<PAGE>
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

(Mark One)

[X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

      For the fiscal year ended June 2, 2002

      OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

      For the transition period from ________________ to __________________

      Commission file number       000-17896

                            HANOVER FOODS CORPORATION
             (Exact name of registrant as specified in its charter)

            PENNSYLVANIA                            23-0670710
  (State or other jurisdiction of       (I.R.S. Employer Identification No.)
   incorporation or organization)

                         1486 YORK STREET, P.O. BOX 334
                        HANOVER, PENNSYLVANIA 17331-0334
               (Address of principal executive offices) (Zip code)
        Registrant's telephone number including area code: (717) 632-6000

        Securities registered pursuant to Section 12(b) of the Act: None

       Title of each class      Name of each exchange on which registered

           Securities registered pursuant to Section 12(g) of the Act:

                         Class A Nonvoting Common Stock
                                (Title of Class)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

Per the most recent independently appraised price, the estimated aggregate value
of Class B Voting Common Stock held by non-affiliates of the registrant was
$28,136,900 excluding 155,949 shares owned by the Employee Stock Trust and
Employee Stock Ownership Plan. As of August 10, 2002, the estimated aggregate
market value of Class A Nonvoting Common Stock held by non-affiliates of the
registrant was $10,442,129. (The exclusion of the market value of shares owned
by any individual or entity shall not be deemed an admission that such person is
an "affiliate" of the registrant.) There were 582,198 shares of Class B Common
Stock outstanding as of August 10, 2002, of which 155,949 shares were owned by
the Employee Stock Trust and Employee Stock Ownership Plan. There were 288,284
shares of Class A Common Stock outstanding as of August 10, 2002.


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                                     PART I

ITEM 1.  BUSINESS

Forward Looking Statements

      When used in this Annual Report on Form 10-K, the words or phrases "will
likely result," "are expected to," "will continue," "is anticipated,"
"estimate," "projected," or similar expressions are intended to identify
"forward looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks and
uncertainties, including, but not limited to, quarterly fluctuations in
operating results, competition, state and federal regulation, environmental
considerations, foreign operations, and a change of control as a result of the
pending Warehime family litigation. Such factors, which are discussed in the
Annual Report, could affect the Corporation's financial performance and could
cause the Corporation's actual results for future periods to differ materially
from any opinion or statements expressed herein with respect to future periods.
As a result, the Corporation wishes to caution readers not to place undue
reliance on any such forward looking statements, which speak only as of the date
made.

OVERVIEW

      Hanover Foods Corporation (as used herein the term "Corporation" refers to
Hanover Foods Corporation and its consolidated subsidiaries) was incorporated on
December 12, 1924 in Harrisburg, Pennsylvania.

      The Corporation has six (6) wholly-owned subsidiaries, Tri-Co. Foods
Corp., Consumers Packing Corporation, d/b/a Hanover Foods - Lancaster Division,
Spring Glen Fresh Foods, Inc., Hanover Insurance Corporation, Ltd., Nittany
Corporation and Bickel's Snack Foods, Inc. Tri-Co. Foods Corp. has three (3)
wholly-owned subsidiaries: Alimentos Congelados Monte Bello, S.A., Sunwise
Corporation and Mayapac, S.A.

      Originally, the Corporation was established to provide seasonal packing of
locally grown peas, beans and other vegetables. See "Part I -- Item 1. Business
-- Risk Factors -- Seasonality and Quarterly Fluctuations." From this beginning,
the Corporation has grown to become one of the leading independent processors of
canned vegetables, frozen vegetables, frozen meat products, frozen entrees,
frozen soft pretzels, canned and frozen mushrooms, fresh foods and snack food
products in the eastern United States. The Corporation's raw materials are
readily available, and the Corporation is not dependent on a single supplier or
a few suppliers. This growth has resulted from the Corporation's extended scope
of operations, new product development and acquisitions. See "Part I -- Item 1.
Business -- Risk Factors -- Industry Conditions and Price and Volume
Fluctuations."

      The Corporation is a vertically integrated processor of food products in
one industry segment. It is involved in the growing, processing, canning,
freezing, freeze-drying, packaging, marketing and distribution of its products
under its own trademarks, as well as other branded, customer and private labels.
See "Part I -- Item 1. Business -- Risk Factors -- General Risks of the Food
Industry."

      The Corporation enjoys its strongest retail sales in the mid-Atlantic
states and Florida. Introduction of frozen ethnic blends, specialty vegetables,
canned pasta, frozen soft pretzels, refrigerated food, canned and frozen
mushrooms and snack food products has enabled the Corporation to increase and
expand its distribution throughout the eastern seaboard. Distribution in the
remainder of the United States is limited to food service, military and
industrial customers.

OPERATIONS

      The Corporation has operations at ten (10) plants in Pennsylvania, one (1)
plant in Maryland, one (1) plant in Delaware, two (2) plants in Guatemala and
one (1) plant in California.

PRODUCTS

      The Corporation markets its products under the brand names HANOVER,
HANOVER FARMS, MYERS, PHILLIPS, GIBBS, SUPERFINE, MARYLAND CHIEF, MITCHELL'S,
DUTCH FARMS, SUNWISE, O&C


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(jarred onions only), SPRING GLEN FRESH FOODS, SUNNYSIDE FOODS, NOTTINGHAM,
BICKEL'S, BON TON, YORK SNACKS, CABANA and DRAPER KING COLE. The products sold
by the Corporation under these brand names include canned vegetables, beans and
pasta as well as frozen vegetables, frozen meat products, food entrees,
refrigerated and fresh foods, canned and frozen mushrooms and potato chips. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations -- Year Ended June 2, 2002 Results of Operations Compared to Year
Ended June 3, 2001" in the 2002 Annual Report attached hereto as Exhibit 13 (the
"Annual Report").

DISTRIBUTION

      The Corporation's products are marketed under its brand labels and
customer private labels to the consumer for home use and also to the food
service trade which includes restaurants, fast food chains, hospitals and
schools as well as military and other governmental uses. The Corporation's ten
largest customers account for approximately 36% of the Corporation's net sales
for the fiscal year ended June 2, 2002 and 32% of accounts receivable as of June
2, 2002. No single customer accounted for more than 10% of net sales for the
fiscal years ended June 2, 2002, June 3, 2001, and May 28, 2000. The
Corporation's products are distributed directly to its customers and indirectly
via independent distributors. Sales activities are conducted via Corporation
employed sales personnel and independent sales brokerage firms. The Corporation
also manufactures private label food products for other food companies.

COMPETITION

      The Corporation markets its food products to the retail and food service
sectors in the northeastern, mid-Atlantic, southeastern and midwestern areas of
the United States. See "Part I -- Item 1. Business -- Risk Factors --
Competition."

      The principal methods of competition within the food processing industry
are: price, promotion, advertising, product quality and service.

      The Corporation competes with national processors such as Agrilink Foods
and Campbell Foods and regional processors such as Bush.

TRADEMARKS

      The Corporation has various registered and unregistered trademarks,
service marks and licenses which are of material importance to the Corporation's
business. The principal trademarks of the Corporation are: Hanover, Myers,
Gibbs, Phillips, Spring Glen, L.K. Bowman, Bickel's, Bon Ton and Cabana.

BACKLOG OF ORDERS

      The Corporation manufactures against customer forecasts and orders. While
at any given time there may be a backlog of orders, such backlog is not material
to total sales, nor are the changes from time to time significant.

RESEARCH AND DEVELOPMENT

      The Corporation engages in research and development of new products and
improvement of existing products as well as the improvement and modernization of
its operating plants and equipment. See Note 1 of the Notes to Consolidated
Financial Statements in the Annual Report.

REGULATION

      The Corporation's operations, as is the case of all food companies, are
subject to strict regulation by the U.S. Food and Drug Administration (FDA). The
Corporation is also subject to inspection by the Food Safety and Quality Service
Division (USDA), for its meat and poultry products. FDA regulates the safety of
the food product, the identity of the product, its purity and identification of
ingredients therein. USDA establishes grades for products


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and regulates sanitation. The appropriate state agencies regulate the sanitation
of the Corporation's plants and the manufacture of food products utilizing flour
in any baking process.

      The Corporation is also regulated by many other federal and state
governmental agencies such as Occupational Safety and Health Administration
(OSHA), Federal Trade Commission and U.S. Environmental Protection Agency. See
"Part I -- Item 1. Business -- Risk Factors -- Regulation."

ENVIRONMENTAL CONSIDERATIONS

      The Corporation continually makes investments to comply with all federal,
state and local laws, environmental rules and regulations. To date, such
expenditures have not been material with respect to the Corporation's capital
expenditures, earnings or competitive position, and are not expected to be in
the future. See "Part I -- Item 1. Business -- Risk Factors -- Environmental
Risks."

SOURCES OF SUPPLY

      The Corporation maintains an intimate involvement in all phases of
agricultural crop production as well as direct procurement of fresh vegetables.
The Corporation procures all of its fresh vegetable requirements through direct
contracts with farmers who cultivate and harvest the crops according to the
Corporation's specifications. In addition, the Corporation directly procures
beans, tomato based products, pasta, herbs and other ingredients, as well as
containers and packaging materials from outside vendors throughout the world. No
supplier provides more than 10% of the raw materials or packaging materials
purchased by the Corporation.

EMPLOYEES

      As of August 10, 2002, the Corporation, its divisions and subsidiaries
employed 1,852 employees on a full-time and a seasonal basis. 1,484 employees
are employed in the United States and 368 are employed in Guatemala.

      A total of 669 production workers at the Hanover, PA; Centre Hall, PA; and
Clayton, DE plants are members of the United Food and Commercial Workers Union -
Locals 1776, 72 and 56, respectively. The Hanover and Centre Hall, PA plants
each have their own three (3) year contract beginning January 1, 2000 and ending
December 31, 2002. The Clayton, DE plant has its own three (3) year contract
beginning January 1, 2001 and ending December 31, 2003. There are no union
contracts at any other plants or locations of the Corporation. The Corporation
has never had any strikes or labor disputes interfering with its operations.
Management considers labor relations to be excellent.

FOREIGN OPERATIONS

      The Corporation's wholly-owned subsidiary, Tri-Co. Foods Corp., has three
wholly-owned subsidiaries, Alimentos Congelados Monte Bello, S.A. and Mayapac,
S.A., both of San Jose Pinula, Guatemala; and Sunwise Corporation, Lakeland,
Florida.

      Alimentos Congelados Monte Bello, S.A. procures, processes and ships
vegetables produced in Guatemala. Alimentos Congelados Monte Bello, S.A.
contracts with approximately 2,400 independent farmers in Guatemala for the
growing and harvesting of broccoli, cauliflower, okra and Brussels sprouts. The
raw vegetable product purchased by the Corporation is frozen at one of two
Corporation plants located in San Jose Pinula, Guatemala; and Teculutan,
Guatemala.

      Sunwise Corporation imports and distributes the Guatemalan product to the
Corporation.

      The business of the Corporation in Guatemala is subject to the laws of
Guatemala which may place restrictions and controls on such matters as
ownership, imports and exports, prices, product lines and transfer of funds, and
is also subject to the fluctuating exchange rate between the Guatemalan quetzal
and the U.S. dollar. See "Management's Discussion and Analysis of Financial
Conditions and Results of Operations -- Impact of Events and Commitments of
Future Operations" in the Annual Report and "Part I -- Item 1. Business -- Risk
Factors -- Risks Associated With Foreign Operations".


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      Information with respect to the revenue, cost of sales and identifiable
assets for the Corporation's foreign operations is set forth in Note 11 to the
Consolidated Financial Statements entitled "Foreign Operations" in the Annual
Report.

RISK FACTORS

Industry Conditions and Price and Volume Fluctuations

      The Corporation's financial performance and growth are related to
conditions in the food processing industry. The United States food processing
industry is a mature industry. The Corporation's net sales are a function of
product availability and market pricing. In the food processing industry,
product availability and market prices tend to have an inverse relationship:
market prices tend to decrease as more product is available, whereas if less
product is available, market prices tend to increase. Product availability is a
direct result of plantings, growing conditions, crop yields and inventories, all
of which vary from year to year. In addition, price can be affected by the
planting, inventory level and individual pricing decisions of the three or four
largest processors in the industry. Generally, the market prices in the food
processing industry tend to adjust more quickly to variations in product
availability than an individual processor can adjust its cost structure; thus,
in an over-supply situation, a processor's margins likely will weaken, as
suppliers generally are not able to adjust their cost structure as rapidly as
market prices adjust for the over-supply. The Corporation typically has
experienced lower margins during times of industry over-supply. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in the Annual Report.

Seasonality and Quarterly Fluctuations

      The Corporation's operations are affected by the growing cycle of the
vegetables it processes. The Corporation's business can be positively or
negatively affected by weather conditions nationally and the resulting impact on
crop yields. Favorable weather conditions can produce high crop yields and an
over-supply situation in a given year. This over-supply typically will result in
depressed selling prices and reduced profitability to the Corporation on the
inventory produced from that year's crops. Excessive rain or drought conditions
can produce low crop yields and a shortage situation. This shortage typically
will result in higher selling prices and increased profitability to the
Corporation. While the national supply situation controls the pricing, the
supply can differ regionally because of variations in weather.

      Because many of the raw materials processed by the Corporation are
agricultural crops, production of products using these crops is predominantly
seasonal. As a result, the Corporation needs access to working capital financing
to meet its production requirements during these periods. See "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in the
Annual Report.

Competition

      All of the Corporation's products compete with those of other national,
major and small regional food processing companies under highly competitive
conditions. Many of the Corporation's major competitors in the market are larger
and have greater financial and marketing resources than the Corporation.
Continued industry consolidation also may increase the market strength of the
Corporation's larger competitors.

Regulation

      United States and foreign governmental laws, regulations and policies
directly affect the agricultural industry and food processing industry. The
Corporation is subject to regulation by the FDA, the USDA, the Federal Trade
Commission, the Environmental Protection Agency and various state agencies with
respect to production, packaging, labeling and distribution of its food
products. The application or modification of existing, or the adoption of new
laws, regulations or policies could have an adverse effect on the Corporation's
business and results of operations.


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General Risks of the Food Industry

      Food processors are subject to the risks of adverse changes in general
economic conditions; evolving consumer preferences and nutritional and
health-related concerns; changes in food distribution channels and increasing
buying power of large supermarket chains and other retail outlets that tend to
resist price increases; federal, state and local food processing controls;
consumer product liability claims; and risks of product tampering.

Environmental Risks

      The disposal of solid and liquid waste material resulting from the
preparation and processing of foods are subject to various federal, state and
local laws and regulations relating to the protection of the environment. Such
laws and regulations have had an important effect on the food processing
industry as a whole, requiring substantially all firms in the industry to incur
material expenditures for modification of existing processing facilities and for
construction of upgraded or new waste treatment facilities.

      The Corporation cannot predict what environmental legislation or
regulations will be enacted in the future, how existing or future laws or
regulations will be administered or interpreted or what environmental conditions
may be found to exist. Enactment of more stringent laws or regulations or more
strict interpretation of existing laws and regulations may require additional
expenditures by the Corporation, some of which could be material.

Risks Associated with Foreign Operations

      Foreign operations generally involve greater risks than doing business in
the United States. Foreign economies differ favorably or unfavorably from the
United States' economy in such respects as the level of inflation and debt,
which may result in fluctuations in the value of the country's currency and real
property. Further, there may be less government regulation in various countries,
and difficulty in enforcing legal rights outside the United States.
Additionally, in some foreign countries, there is the possibility of
expropriation or confiscatory taxation, limitations on the removal of property
or other assets, political or social instability or diplomatic developments
which could affect the operations and assets of U.S. companies doing business in
that country. Some of these risks are more pronounced in third world countries,
such as Guatemala. At June 2, 2002, the total assets of the Corporation's
foreign operations were approximately $9.1 million.

Litigation Risks

     The Corporation is involved in litigation with the Warehime family (see
"Part I -- Item 3. -- Legal Proceedings"). As a result of the pending litigation
there may be a change of control of the Corporation. A change in control could
have an adverse effect on the Corporation's business and results of operations.

WHERE YOU CAN FIND MORE INFORMATION

     We file annual, quarterly and current reports, proxy statements and other
information with the Securities and Exchange Commission (the "SEC"). You may
read and copy our reports or other filings made with the SEC at the SEC's Public
Reference Room, located at 450 Fifth Street, N.W., Washington, DC 20549. You can
also access information that we file with the SEC electronically on the SEC's
website, www.sec.gov. We will provide, at no cost, paper as electronic copies of
our reports and other filings made with the SEC. Requests should be directed to:

                        Gary T. Knisely
                        Hanover Foods Corporation
                        1486 York Street
                        P.O. Box 334
                        Hanover, PA 17331
                        Telephone:  (717) 632-6000


ITEM 2.  PROPERTIES

      The following is a list of the Corporation's manufacturing, processing and
warehousing properties. The Corporation owns each of the properties.


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<TABLE>
<S>                           <C>
UNITED STATES
  Hanover, PA.............    Canned and jarred products processing,
                              repackaging of frozen vegetables, frozen soft
                              pretzels manufacture, and dry and frozen storage.
                              Corporate research, new product development and
                              quality assurance laboratory (corporate
                              headquarters).
  Centre Hall, PA.........    Frozen vegetable processing, frozen food entree
                              and meat pie manufacturing.  Dry and frozen
                              storage.
  Lancaster, PA...........    Freeze-dried food and ice manufacturing.  Dry and
                              frozen storage.
  Nottingham, PA..........    Canned mushrooms, dry storage.
  Ephrata, PA.............    Refrigerated, fresh foods and soups
                              manufacturing.  Dry, refrigerated and frozen
                              storage.
  Manheim, PA.............    Dry storage and direct store distribution center.
  Ridgely, MD.............    Frozen peas, onions, peppers, zucchini and
                              celery, frozen and blanched mushrooms.  Dry and
                              frozen storage.
  Clayton, DE.............    Frozen vegetables, breaded mushrooms & okra,
                              frozen food entrees, meat pies and soup
                              manufacture.  Dry and frozen storage.
  York, PA (3 locations)..    Dry storage and distribution.
                              Corn product manufacturer. Dry storage.
                              Extruded corn product manufacturer. Dry storage.
GUATEMALA
  San Jose Pinula.........    Frozen vegetable processing, dry and frozen
                              storage, research and quality assurance
                              laboratory.
  Teculutan...............    Frozen vegetable processing, dry and frozen
                              storage.
</TABLE>


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ITEM 3.  LEGAL PROCEEDINGS

Derivative Action

      On September 13, 1996, certain Class A shareholders filed a complaint in
equity against six of the Corporation's directors and the estate of a former
director in the Court of Common Pleas of York County, Pennsylvania (the
complaint). The suit also names the Corporation as a nominal defendant. The suit
sought various forms of relief including, but not limited to, rescission of the
board's April 28, 1995 approval of John A. Warehime's 1995 Employment Agreement
and the board's February 10, 1995 adjustment of director's fees. (Since the
filing of this lawsuit, John A. Warehime's 1995 Employment Agreement was
amended.) In addition, the plaintiffs sought costs and fees incident to bringing
suit. On November 4, 1996, the complaint was amended to add additional
plaintiffs. On June 24, 1997, the Court dismissed the amended complaint for
failure to make a prior demand. An appeal was filed on the Court's June 24, 1997
Order. On December 2, 1998, the Superior Court of Pennsylvania held that the
derivative plaintiffs had made adequate demand.

      On May 12, 1997, a written demand was received by the Corporation from the
attorney for those Class A shareholders containing similar allegations
and the allegations raised by the Class A common stockholders were investigated
by a special independent committee of the Board of Directors and found to be
without merit.

      The director defendants filed an Answer and New Matter to the amended
complaint on March 17, 1999. On September 5, 2001, director defendants filed a
Motion to Dismiss the Derivative Action. On September 20, 2001, plaintiffs
filed an answer to director defendants' Motion to Dismiss. On May 17, 2002, the
court entered an order denying defendants' Motion to Dismiss.

      On May 14, 2002, Albert Blakey, Esquire, counsel for certain of the
derivative plaintiffs filed a Petition for Fees seeking an award of $1,585,716
in attorney's fees. Defendants filed a response in opposition to the request for
fees.

Warehime Family Litigation

      On February 13, 1997, the Board of Directors proposed an amendment and
restatement of the Corporation's Articles of Incorporation (the "Amended and
Restated Articles") which provides that if all of the following Class B
shareholders (or their estates upon the death of such shareholders), (Michael A.
Warehime, John A. Warehime, Sally W. Yelland, J. William Warehime, and Elizabeth
W. Stick (all members of the Warehime family)), do not agree in writing to the
composition of the Board of Directors or other important matters specified below
on or after the 1998 annual shareholders meeting, the trustees of the
Corporation's 401(k) Savings Plan (or a similar employee benefit plan), acting
as fiduciaries for the employees who participate in the Plan, and the Class A
shareholders may become entitled to vote in the manner described in the
document. Pursuant to the Corporation's Bylaws, nominations for directors must
be submitted to the Corporation in the manner prescribed by the Bylaws no later
than June 1 of the year in which the meeting is to occur.

      The Amended and Restated Articles created a Series C Convertible Preferred
Stock and also classified the terms of the Board of Directors commencing with
the election at the 1997 annual shareholders' meeting and permitted directors to
be elected for four-year terms as permitted by Pennsylvania law.

      On February 21, 1997, Michael A. Warehime, a Class B shareholder, and
certain Class A shareholders filed motions for a preliminary injunction against
the Corporation, John A. Warehime, in his capacity as voting trustee, and
certain directors of the Corporation in the Court of Common Pleas of York
County, Pennsylvania against a Proposal of the Board of Directors to amend and
restate the Corporation's Articles of Incorporation in the manner hereafter
described.

      The motions for a preliminary injunction were dismissed by the Court on
June 24, 1997. The Class B shareholders on June 25, 1997 approved the Amended
and Restated Articles (John A. Warehime, being the sole Class B shareholder
voting affirmatively in his capacity as voting trustee) and the Amended and
Restated Articles became effective June 25, 1997.


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<PAGE>

      In August 1997, the Board of Directors proposed a further amendment (the
"Amendment") to the Amended and Restated Articles to expand the definition of
"disinterested directors" in the manner described below, and to approve certain
performance based compensation for John A. Warehime solely for the purpose of
making the Corporation eligible for a federal income tax deduction pursuant to
Section 162(m) of the Internal Revenue Code of 1986, as amended. A special
meeting was scheduled for August 14, 1997 (the "Special Meeting") to vote on
these proposals. On August 8, 1997, Michael A. Warehime filed a motion in the
Court of Common Pleas of York County, Pennsylvania to prevent John A. Warehime,
in his capacity as voting trustee from voting on these proposals and to
enjoin the Amendment. This motion was denied by the Court on August 11, 1997.
The Amendment and the proposal under Section 162(m) were approved by Class B
shareholders (John A. Warehime was the sole Class B shareholder to vote
affirmatively, in his capacity as voting trustee) on August 14, 1997 and the
Amendment became effective on August 14, 1997.

      Under the Amendment, the definition of "disinterested directors" means a
person who, in the opinion of counsel for the Corporation, meets any of the
following criteria: (i) disinterested directors as defined in Section 1715(e) of
the Pennsylvania Business Corporations Law of 1988, as amended; (ii) persons who
are not "interested" directors as defined in Section 1.23 of The American Law
Institute "Principles of Corporate Governance: Analysis and Recommendations"
(1994); or (iii) persons who qualify as members of the Audit Committee pursuant
to Section 303.00 of the New York Stock Exchange's Listed Company Manual.

      Michael A. Warehime filed an appeal from the denial of his motion to
enjoin the previously described Amendment to the Corporation's Amended and
Restated Articles. On December 2, 1998, a majority panel of the Superior Court
of Pennsylvania issued a decision holding that although John A. Warehime had
acted in good faith in voting for the Amendment to the Amended and Restated
Articles as trustee of the Warehime voting trust, he had breached his fiduciary
duty to the beneficiaries of the Warehime voting trust in voting for the
Amendment. On November 29, 1999, the Supreme Court of Pennsylvania granted a
petition for allowance of appeal, filed by John A. Warehime, and granted a
cross-petition for appeal filed by Michael A. Warehime.

      On August 13, 1999, Michael A. Warehime filed a complaint in equity in the
Court of Common Pleas of York County, Pennsylvania, naming as defendants Arthur
S. Schaier, Cyril T. Noel, Clayton J. Rohrbach, Jr., John A. Warehime, and the
Corporation. The complaint sought a court order declaring that the September
1999 election for the Board of Directors of the Corporation be conducted in
accordance with the Articles of Incorporation of the Corporation as they existed
prior to June 25, 1997, an order declaring that the Series C Convertible
Preferred Stock cannot be voted, and an order that the following candidates for
the Board of Directors of the Corporation proposed by Michael A. Warehime, Sally
Yelland, Elizabeth Stick and J. William Warehime be accepted by the Corporation
and listed on the ballot to be distributed at the annual meeting of shareholders
of the Corporation to be held on September 16, 1999: Michael A. Warehime, Daniel
Meckley, Elizabeth Stick, Sonny Bowman, and John Denton. The basis for the
complaint was the December 2, 1998 decision of the Superior Court of
Pennsylvania which held that John A. Warehime breached his fiduciary duties in
voting for the Amended and Restated Articles as trustee of the Warehime voting
trust. The requested relief was denied by the Court of Common Pleas of York
County and Michael Warehime appealed to the Superior Court of Pennsylvania.

      On September 12, 2000, the Superior Court of Pennsylvania stated, in a
Memorandum decision, that the June 25, 1997 shareholder vote, which adopted the
Amended and Restated Articles of Incorporation of the Corporation should be set
aside, and remanded the case to the Court of Common Pleas of York County to
determine what further relief would be appropriate. On remand, the Court of
Common Pleas of York County entered an Order on October 10, 2000 declaring that
the Amended and Restated Articles of Incorporation were set aside and that an
election should be held without the Amended or Restated Articles of
Incorporation. On October 11, 2000, the Supreme Court of Pennsylvania entered an
Order staying the Order of the Court of Common Pleas of York County.

      On November 27, 2000, the Supreme Court of Pennsylvania reversed and
remanded the Order of the Superior Court issued on December 2, 1998 and, in
effect, the Order of the Superior Court issued September 12, 2000. In reversing
the Superior Court's Order, the Supreme Court of Pennsylvania held that John A.
Warehime, the trustee of the voting trust, did not breach his fiduciary duties
in voting the trust shares in favor of the Amended and Restated Articles of
Incorporation. The Supreme Court remanded the case to the Superior Court of
Pennsylvania to consider other issues raised by Michael A. Warehime.


                                       8
<PAGE>

      On May 4, 2001, the Superior Court of Pennsylvania, on remand from the
Supreme Court of Pennsylvania to decide several remaining issues, held that the
1997 amendments to the Corporation's Amended and Restated Articles of
Incorporation "violated principles of corporate democracy" and should be
invalidated even though the Superior Court found the directors acted in good
faith and their actions in approving the amendments did not result in a breach
of their fiduciary duties. A petition for allocatur was filed with the Supreme
Court of Pennsylvania requesting that the Supreme Court of Pennsylvania review
the Superior Court's May 4, 2001 ruling.

      The Corporation is involved in various other claims and legal actions
arising in the ordinary course of business. In the opinion of management, the
ultimate disposition of these matters will not have a material adverse effect on
the Corporation's consolidated financial position, results of operations or
liquidity.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None.

                                     PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
         MATTERS

      Information contained under the caption "Market for the Registrant's
Common Equity and Related Stockholder Matters" in the Corporation's Annual
Report to Shareholders as of and for the year ended June 2, 2002, which is
attached as Exhibit 13, is incorporated herein by reference in response to this
item. See "Part III -- Item 12. Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder Matters -- Equity Compensation Plan
Information" regarding the Corporation's equity compensation plans.

RECENT SALES OF UNREGISTERED SECURITIES

      As of September 1, 2001, the Corporation entered in the Note Purchase
Agreement with a group of lenders led by John Hancock Insurance Company (the
"Lenders") and issued 7.01% Senior Notes (the "Notes") due September 15, 2011 in
the aggregate principal amount of $25.0 million to the Lenders. This transaction
was not registered under the Securities Act of 1933, as amended (the "Securities
Act"), in reliance on the exemption from registration in Section 4(2) of the
Securities Act, as a transaction not involving any public offering. This
offering was completed without any general or public solicitation.

ITEM 6.  SELECTED FINANCIAL DATA

      Information contained under the caption "Financial Highlights Five Years"
in the Corporation's Annual Report to Shareholders as of and for the year ended
June 2, 2002, which is attached as Exhibit 13, is incorporated herein by
reference in response to this item.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

      Information contained under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the Corporation's
Annual Report to Shareholders as of and for the year ended June 2, 2002, which
is attached as Exhibit 13, is incorporated herein by reference in response to
this item.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      Information contained under the caption "Quantitative and Qualitative
Disclosures about Market Risk"  in the Corporation's Annual Report to
Shareholders as of and for the year ended June 2, 2002, which is attached as
Exhibit 13, is incorporated herein by reference in response to this item.


                                       9
<PAGE>

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

      Financial statements for Hanover Foods Corporation and Subsidiaries
contained in the Corporation's Annual Report to Shareholders as of and for the
year ended June 2, 2002, and quarterly financial data contained in the
Corporation's Annual Report to shareholders as of and for the year ended June 2,
2002, which is attached as Exhibit 13, are incorporated herein by reference in
response to this item.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

      None.

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE CORPORATION

      The following table sets forth the name, age and the present principal
occupation or employment, and the name, principal business and address of any
corporation or other organization in which such employment is carried on, of the
directors of the Corporation.
<TABLE>
<CAPTION>
                         AGE                                         DIRECTOR
          NAME           (1)    PRINCIPAL OCCUPATION OR EMPLOYMENT    SINCE
-----------------------  ---    ----------------------------------   --------
<S>                      <C>    <C>                                  <C>
John A. Warehime......     64   Chairman of the Board, President      1985
                                and Chief Executive Officer of the
                                Corporation
Clayton J. Rohrbach...     82   Retired; formerly Vice President of   1984
                                Marketing at CPC International
Cyril T. Noel(2)......     77   Retired; formerly Vice President of   1983
                                Finance of the Corporation
T. Edward Lippy.......     72   Vice President of Lippy Brothers,     1994
                                Inc.
Arthur S. Schaier.....     60   Corporate General Manager -           1994
                                Earnhardt's Dodge Motor Companies
James G. Sturgill, CPA,
CVA...................     61   Managing Partner at Sturgill &        1994
                                Associates, LLP
James A. Washburn.....     52   Chairman and CEO at Park 100 Foods,   1996
                                Inc.
Jennifer W. Carter(3).     38   Assistant to the Chairman             2002
T. Michael Haugh......     52   President of Hospitality Management   2002
                                Corporation
</TABLE>

----------------------------

(1)   Age as of August 10, 2002.

(2)   Mr. Noel served on the Board from May 1983 until June 1994 and from
      October 1994 to present.

(3)   Ms. Carter is the daughter of John A. Warehime.

      Pursuant to the Corporation's Amended and Restated Articles of
Incorporation, as amended, each director serves until his or her successor has
been duly elected and qualifies, even though his or her term of office has
otherwise expired.

      The following information about the Corporation's directors is based, in
part, upon information supplied by such persons.

      John A. Warehime has served as Chairman of the Board and Chief Executive
Officer of the Corporation since 1989 and as a Director of the Corporation since
1985. Mr. Warehime has 49 years of experience in the food processing industry.


                                       10
<PAGE>

      Clayton J. Rohrbach is currently retired. Prior to his retirement, Mr.
Rohrbach was employed at CPC International, a large New York Stock Exchange
traded food company located in Englewood Cliffs, New Jersey, from 1975 through
1985 as Vice President of Marketing.

      Cyril T. Noel is currently retired. Mr. Noel was the Vice President of
Finance of the Corporation from 1985 through 1994. Mr. Noel has served on the
Board from May 1983 until June 15, 1994 and from October 18, 1994 to the
present.

      T. Edward Lippy has been the Vice President of Lippy Brothers, Inc., a
family farming company located in Hampstead, Maryland, since 1994. Mr. Lippy
currently serves as a director for the following entities: Vice Chairman and
Director of Farmers & Merchants Bank, a public company located in Fowblesburg,
Maryland, since 1989 and director of Ag First Farm Credit Bank since 1988.
Additionally, Mr. Lippy, served as the Chairman of Baltimore Farm Credit Bank
from 1990 through 1992 and as Chairman of the Farm Credit Council, Washington,
D.C. from 1993 through 1997.

      Arthur S. Schaier has been a shareholder, Corporate General Manager of
Earnhardt's Dodge Motor Companies located in Gilbert, Arizona, since 1981. Mr.
Schaier currently serves as Director of ADI, the Phoenix, Arizona Metropolitan
Dodge Dealers advertising organization and Board of Directors MOPAR Parts.

      James G. Sturgill, CPA, CVA, has been the Managing Partner at Sturgill &
Associates, LLP, a public accounting firm headquartered in Westminster,
Maryland, since 1993. Prior to 1993, he was employed at Sturgill, Rager &
Lehman, a firm located in Westminster, Maryland from 1980 to 1993.

      James A. Washburn has been the Chairman and Chief Executive Officer of
Park 100 Foods, Inc., a food manufacturing company, located in Tipton, Indiana,
since 1991. Prior thereto, Mr. Washburn was the President and Chief Executive
Officer of Hamilton Medaris Corporation and H.M.C. Transportation located in
Fishers, Indiana.

      Jennifer W. Carter has been Sales and Marketing Facilitator at the
Corporation since 1997 and Assistant to the Chairman of the Corporation since
June 1, 2000.

      T. Michael Haugh has been President of Hospitality Management Corporation,
Abbottstown, Pennsylvania, a contract food service company including a fine
dining restaurant and off-premises catering operation, since 1997.

See "Part I -- Item 3. Legal Proceedings" for information regarding the Warehime
Family Litigation.

        EXECUTIVE OFFICERS OF THE CORPORATION WHO ARE NOT ALSO DIRECTORS

<TABLE>
<CAPTION>
                                        PRINCIPAL OCCUPATION DURING
NAME AND AGE (1)                        PAST FIVE (5) YEARS AND TERM IN OFFICE
------------------                      --------------------------------------
<S>                                     <C>
GARY T. KNISELY, ESQUIRE                Executive Vice President-1995-Present;
Chief Financial Officer, Counsel        Vice President-Administration-1989-1995;
Executive Vice President and Secretary  Counsel-1987-Present; Secretary-1987-
Age: 53                                 Present.  Mr. Knisely also acts as Chief
                                        Financial Officer of the Corporation
                                        (January 1996-Present).

PIETRO D. GIRAFFA, JR.                  Vice President-Controller-1996-Present;
Vice President-Controller               Controller-1984-1996.  Mr. Giraffa also
Chief Accounting Officer                acts as accounting Officer of the
Age: 56                                 Corporation 1996-Present).

ALAN T. YOUNG                           Senior Vice President-Purchasing &
Senior Vice President-Purchasing and    Transportation-1996-Present;
Transportation                          Vice President-Transportation-1996-2000;
Age: 59                                 Vice President-Operations-1991-1996;
                                        Director of Corporate Logistics-
                                        1990-1991; Manager of Corporate Systems-
                                        1986-1990.
</TABLE>


                                       11
<PAGE>
<TABLE>
<Caption>
<S>                                     <C>
DANIEL E. SCHUCHART                     Vice President of  Sales-October 19,
Vice President of Sales                 2000-Present; Vice President of
Age: 48                                 IndustrialSales-June 1, 1995-
                                        October 18, 2000.

EDWARD L. BOECKEL, JR.                  General Manager-Bickel's Snack Foods,
Treasurer                               Inc. - January 2000-Present;
Vice President and General Manager -    Vice President and General Manager -
Bickel's                                Bickel's Snack Foods, Inc. -
Snack Foods, Inc.                       June 1, 2002 - Present;Treasurer-
Age - -51                               July 1997-Present; Banking &Insurance
                                        Manager-1995-1997; VicePresident
                                        CoreStates Bank-1992-1995.
</TABLE>

----------------------------

(1)   Age as of August 10, 2002.

FAMILY RELATIONSHIPS OF DIRECTORS AND EXECUTIVE OFFICERS

      Director Jennifer W. Carter is the married daughter of John A. Warehime,
Chairman, Chief Executive Officer and President of the Corporation.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

      Section 16(a) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), requires that directors and certain officers of the Corporation
file reports of ownership and changes in ownership with the Securities and
Exchange Commission as to the shares of the Corporation Class A Common Stock
beneficially owned by them.

      Based solely on its review of copies of such forms received by it, the
Corporation believes that during the Corporation's fiscal year ended June 2,
2002, all filing requirements applicable to its directors and officers were
complied with in a timely fashion.

BOARD OF DIRECTORS, COMMITTEES AND ATTENDANCE AT MEETINGS

      The Board of Directors held five meetings during fiscal 2002. Each
director attended 75% or more of the meetings of the Board and committees of
which they were members during fiscal 2002.

      The Board of Directors has a Compensation Committee to make
recommendations to the Board of Directors concerning compensation for the
Corporation's executive officers and take such other actions as may be required
in connection with the Corporation's compensation and incentive plans. During
fiscal 2002, the Compensation Committee held one meeting. Members of the
Compensation Committee include Directors Rohrbach and Schaier. The report of the
Compensation Committee is contained elsewhere herein.

      The Board of Directors also has an Audit Committee to review the
Corporation's audited financial statements and makes recommendations to the
Board concerning the Corporation's accounting practices and policies and the
selection of independent accountants. Members of the Audit Committee include
Directors Noel, Rohrbach, and Schaier. The Audit Committee met four times during
fiscal 2002.

      The Board of Directors has not appointed a standing Nominating Committee.
The function of the nominating directors is carried out by the entire Board of
Directors. Pursuant to the Amended and Restated Bylaws, a shareholder may
nominate persons for election as director, provided that the shareholder (i) is
a holder of a class of stock entitled to vote for the election of directors at
the meeting of shareholders, and (ii) complies with the notice procedures of
Article III, Section 2 of the Bylaws. This section as currently in effect
provides that the nominating shareholder must deliver notice of the nomination
to the Corporation's Secretary not later than June 1 of the calendar year in
which the meeting to elect the director or directors is to be held. The required
notice must contain certain information, including information about the
nominee, as prescribed in the Bylaws.

                                       12
<PAGE>
DIRECTOR COMPENSATION

         During fiscal year 2002, each director of the Corporation was paid an
annual retainer of $12,000 payable in equal monthly installments of $1,000.
Board Members also receive a fee of $1,500 for each quarterly Board meeting
attended in person and $750 for each quarterly Board meeting which the director
participated in by telephone. Directors are paid $1,000 for each special Board
meeting attended in person and $500 for each special Board meeting which the
director participated in by telephone. In addition, an annual fee of $1,000 per
year was paid for service as a committee chairman. Committee members also
received a fee of $1,000 for each committee meeting attended in person and $500
for each committee meeting which the director participated in by telephone.

         In addition, prior to fiscal year 2002, James Sturgill, a director of
the Corporation provided consulting services on a hourly fee basis.

AUDIT COMMITTEE REPORT

         On July 25, 2002, the Audit Committee met with management to review and
discuss the audited financial statements. The Audit Committee also conducted
discussions with its independent auditors, KPMG LLP, regarding the matters
required by the Statement on Auditing Standards No. 61. As required by
Independence Standards Board Standard No. 1, "Independence Discussion with Audit
Committees," the Audit Committee has discussed with and received the required
written disclosures and a confirming letter from KPMG LLP regarding its
independence and has discussed with KPMG LLP its independence. Based upon the
review and discussions referred to above, the Audit Committee recommended to the
Board of Directors that the audited financial statements be included in the
Corporation's Annual Report on Form 10-K for the year ended June 2, 2002.

         This Audit Committee Report shall not be deemed incorporated by
reference in any document previously or subsequently filed with the Securities
and Exchange Commission that incorporates by reference all or any portion of
this Annual Report on Form 10-K, except to the extent that the Corporation
specifically requests that the Audit Committee Report be specifically
incorporated by reference.

                         Members of the Audit Committee

     Cyril T. Noel            Clayton Rohrbach, Jr.         Arthur S. Schaier

ITEM 11. EXECUTIVE COMPENSATION.

         The following table sets forth certain information regarding the
compensation paid to the Chief Executive Officer and each of the four other most
highly compensated executive officers of the Corporation for services rendered
in all capacities during the past three fiscal years ("Named Officers").

                           SUMMARY COMPENSATION TABLE
                               Annual Compensation

<TABLE>
<CAPTION>
                                                                                                OTHER ANNUAL          ALL OTHER
       NAME AND PRINCIPAL POSITION              FISCAL YEAR       SALARY           BONUS        COMPENSATION         COMPENSATION
       ---------------------------              -----------       ------           -----        ------------         ------------
<S>                                             <C>             <C>              <C>            <C>                 <C>
John A. Warehime............................        2002        $ 701,995        $ 455,505        $ 6,623(1)        $ 934,500(2)(4)
Chairman, President and Chief Executive             2001          668,544          475,472          4,095(1)          756,781
Officer                                             2000          636,694          823,606         16,437(1)          589,000

Gary T. Knisely.............................        2002        $ 231,525        $ 231,525           $-0-           $  89,000(3)(4)
Chief Financial Officer, Counsel, Executive         2001          220,500              -0-            -0-             116,500
Vice President and Secretary                        2000          210,000          104,600            -0-              53,000

Alan T. Young...............................        2002        $ 146,426        $ 153,217           $-0-              $7,638(4)
Senior Vice President - Purchasing and              2001          142,161            8,116            -0-               8,500
Transportation                                      2000          138,000           55,885            -0-               8,000

Pietro D. Giraffa, Jr.......................        2002        $ 131,127        $ 131,127           $-0-              $6,477(4)
Vice President - Controller and Chief               2001          127,308              -0-            -0-               7,895
Accounting Officer                                  2000          123,600           42,136            -0-               8,000
</TABLE>


                                       13
<PAGE>
<TABLE>
<CAPTION>
                                                                                                OTHER ANNUAL          ALL OTHER
       NAME AND PRINCIPAL POSITION              FISCAL YEAR       SALARY           BONUS        COMPENSATION         COMPENSATION
       ---------------------------              -----------       ------           -----        ------------         ------------
<S>                                             <C>             <C>              <C>            <C>                 <C>
Daniel E. Schuchart.........................        2002        $ 118,450        $  94,405           $-0-              $7,245(4)
Vice President - Sales                              2001          115,000           27,880            -0-               8,160
                                                    2000           92,700           12,375            -0-               8,000
</TABLE>


(1) Includes perquisites paid pursuant to the June 12, 1995 Employment
    Agreement, as amended, including the value of a company car and country club
    dues totaling $6,623.

(2) Includes the Corporation's payment for premiums of $153,000 for two
    split-dollar life insurance policies on the life of Patricia M. Warehime,
    the wife of Mr. Warehime, and the accrual of $773,000 to reflect
    supplemental pension benefits to be paid pursuant to Mr. Warehime's
    Employment Agreement dated June 12, 1995, as amended.

(3) Includes the Corporation's accrual of $80,500 to reflect supplemental
    pension benefits to be paid pursuant to Mr. Knisely's Employment Agreement,
    dated January 23, 1997.

(4) Includes the Corporation's matching contributions pursuant to the 401(k)
    Plan made to the accounts of Messrs. Warehime and Knisely in the amount of
    $8,500 each and to the account of Mr. Young in the amount of $7,638; and the
    account of Mr. Giraffa in the amount of $6,477; and to the account of Mr.
    Schuchart in the amount of $7,245.

         The Corporation did not grant stock options under the Plan to the Named
Officers during the fiscal year ended June 2, 2002. Options to purchase 5,500
shares of the Corporation's Class B common stock were granted to the Named
Officers subsequent to fiscal year end. No options were granted to John
Warehime.

2002 STOCK OPTION PLAN

         On June 20, 2002, the Corporation's Board of Directors adopted the
Hanover Foods Corporation 2002 Stock Option Plan (the "Stock Option Plan").
34,600 shares of the Corporation's Class B common stock, par value $25.00 per
share, are authorized for issuance under the Stock Option Plan, and options to
purchase 13,500 shares were granted subsequent to fiscal 2002 year end. All
officers and key employees of the Corporation and of any present or future
parent or subsidiary of the Corporation are eligible to receive options under
the Stock Option Plan, excluding John A. Warehime. No individual may receive
options under the Stock Option Plan for more than 15% of the total number of
shares of the Corporation's Class B common stock authorized for issuance under
the Stock Option Plan.

         The Stock Option Plan will be administered by the Corporation's Board
of Directors or by an option committee appointed by the Corporation's Board of
Directors. The option committee will consist of a minimum of two and a maximum
of five members of the Board of Directors, each of whom will be a "non-employee
director" within the meaning of Rule 16b-3(b)(3) under the Exchange Act.

         Options issued pursuant to the Stock Option Plan may be either
incentive stock options or non-qualified stock options. An "incentive stock
option" is an option that satisfies all of the requirements of Section 422(b) of
the Internal Revenue Code of 1986, as amended, and the regulations thereunder,
and a "non-qualified stock option" is an option that either does not satisfy all
of those requirements or the terms of the option provide that it will not be
treated as an incentive stock option. The option price for options issued under
the Stock Option Plan will be equal at least to the fair market value of the
Corporation's Class B common stock on the date of the grant of the option.
Options will not be granted pursuant to the Stock Option Plan after the
expiration of ten years from June 20, 2002. The number of shares available for
award under the Stock Option Plan is subject to adjustment in the event of any
change in the outstanding shares of the Class B common stock as a result of,
among other circumstances, a stock dividend, stock split, recapitalization,
merger, transfer of assets, or reorganization.

EMPLOYEE STOCK TRUST

         The Hanover Foods Corporation Employee Stock Trust (the "Trust") was
revised and restated effective June 20, 2002. The Trust is designed to fund
contributions to employee benefit plans for non-union employees of Hanover
(excluding John A. Warehime), including, but not limited to, the Hanover Foods
Corporation Employee Stock Ownership Plan ("ESOP"), and the Stock Option Plan.
Currently, stock held in the Trust is allocated to either the Employee Stock
Ownership Plan sub-account or the Stock Option Plan sub-account and the stock in
each sub-account is to be used exclusively to satisfy the Corporation's
obligations under the applicable benefit plan. Stock


                                       14
<PAGE>
held in the ESOP sub-account is voted by the trustee, Cyril T. Noel, pursuant to
the directions of active participants in the ESOP. Stock held in the Stock
Option Plan sub-account is voted by the trustee pursuant to the directions of
holders of unexercised stock options. The trustee is not required to obtain
instruction for voting on procedural or ministerial matters such as shareholder
meeting procedure.

         Dividends and other distributions attributable to stock held in the
Trust are to be used exclusively for the purpose of satisfying the Corporation's
obligations under its various employee benefit plans. The Trust is irrevocable,
provided however, no shares of stock held by the Trust may be transferred to any
other employee benefit plan other than the ESOP or to satisfy obligations under
the Stock Option Plan for a period of five years from the effective date of the
Trust. Stock held in the Trust is governed exclusively by the terms of the Trust
Agreement and is not directly or indirectly controlled by the Board of
Directors. Concurrent with the revision and restatement of the Trust, the
Corporation contributed an additional 13,500 shares of Hanover Class B common
stock to the Trust for the purpose of funding obligations under the Stock Option
Plan.

EMPLOYEE STOCK OWNERSHIP PLAN

         On January 1, 2001, the Corporation adopted the Hanover Foods
Corporation Employee Stock Ownership Plan. The ESOP is a defined contribution
employee pension plan designed to invest primarily in securities of the
Corporation. Non-union employees, except John A. Warehime, are eligible to
participate upon completion of one year of service. Contributions may be made
annually at the discretion of the Corporation. Contributions to the ESOP may
take the form of cash or securities of the Corporation. It is intended that
contributions will be made primarily by the transfer of Class B common stock of
the Corporation from the Employer Stock Trust to the ESOP. Securities so
contributed to the ESOP are allocated to the accounts of all "active
participants" in the ESOP in proportion to each participant's compensation.
"Active participant" is defined as each participant who has completed a year of
service during the plan year or retired or was on leave as of the last day of
the plan year. Although the ESOP is designed to invest primarily in Corporation
securities, participants have the option to diversify their accounts after
completing 10 years of participation and attaining age 55. Up to 50% of each
such participant's account may be invested in securities other than Corporation
securities.

         Corporation securities owned by the ESOP are voted by the ESOP trustee,
Cyril T. Noel. Participants with Corporation securities allocated to their
accounts are permitted to direct the ESOP trustee as to the manner in which such
shares are voted. The direction so received is tabulated on a "one share one
vote" basis. All shares held by the ESOP for which direction is not received,
including unallocated shares and shares allocated to the account of a
participant who declines to direct the trustee as to the manner in which such
shares should be voted, are voted proportionately in accordance with the
tabulation of the voting instructions received by the trustee. The trustee is
not required to obtain instruction from ESOP participants for voting on
procedural or ministerial matters such as shareholder meeting procedure.

401(K) SAVINGS PLAN

         On April 2, 1990, the Corporation adopted a defined contribution
benefit plan, known as the Corporation's 401(k) Savings Plan (the "401(k)
Plan"). The 401(k) Plan was amended on June 5, 1992, April 4, 1994, April 28,
1995, July 25, 1997, December 14, 1997 and July 25, 2002 to read in its present
form. Non-union, full-time domestic employees and those employees who are
members of Local 56 of the United Food and Commercial Workers Union are eligible
to participate after completion of one year of service. Each eligible employee
has the option to defer up to 16% of his or her total annual cash compensation
per year. As of December 31st of each year, the Corporation, at its discretion,
may make matching contributions equal to one hundred percent of each
participating employee's account for the first five percent of compensation
deferred by each employee. These contributions may be made in cash, Corporation
stock, or a combination of cash and Corporation stock. The 401(k) Plan provides
various investment options. The 401(k) Plan provides for loans to plan
participants but does not permit early withdrawals. Matching contributions made
by the Corporation to the accounts of the Named Officers are included in the
Summary Compensation Table contained previously herein.

         Corporation securities owned by the 401(k) Plan are voted by the 401(k)
Plan trustees: Cyril T. Noel,


                                       15
<PAGE>
Clayton J. Rohrbach, and Arthur S. Schaier. All shares held by the 401(k) Plan
are voted as a block according to the decision of a simple majority vote of the
401(k) Plan trustees who actually cast a vote. Each 401(k) Plan trustee is
entitled to abstain from voting. If only one 401(k) Plan trustee chooses to cast
a vote, the vote shall be legally effective, provided that such 401(k) Plan
trustee is the chairman of the board (unless the chairman of the board elects in
writing otherwise). None of the trustees currently serves as such chairman of
the board.

EMPLOYMENT AGREEMENTS AND CHANGE IN CONTROL SEVERANCE AGREEMENTS

         On June 12, 1995, the Corporation entered into a five-year employment
agreement with its Chief Executive Officer, John A. Warehime, at an annual base
salary of $650,000 with such compensation payable retroactively from April 1,
1994 (the "1995 Employment Agreement"). The 1995 Employment Agreement was
amended on February 13, 1997 ("Amended Employment Agreement"). The principal
terms of Mr. Warehime's employment arrangements with the Corporation as amended
by the Amended Employment Agreement are set forth below.

         The Amended Employment Agreement provides for annual increases (but not
decreases) in the employee's annual salary equal to the greater of 5% of the
prior year's salary or the annual percentage increase in the Consumer Price
Index (CPI). Mr. Warehime's annual base salary for fiscal 2002 and 2001 was
$701,995 and $668,544, respectively. Unless terminated by either party, the
Amended Employment Agreement automatically renews annually on each anniversary
date so that five years always remain on the term of the agreement. In the event
the employee is terminated without cause, or in the event the employee
terminates his employment after a reduction (without his written consent) of his
duties or authority, compensation, or similar events, the Amended Employment
Agreement provides for the payment of the salary and bonus (including all other
benefits) over the remaining term of the agreement. In the event of termination
due to death or disability, the Amended Employment Agreement provides for the
same payment to the employee (or in the event of the death of the employee, his
spouse, or descendants) for one year and thereafter the payment of supplemental
pension benefits as described below. In addition, the Amended Employment
Agreement provides for the reimbursement by the Corporation of the employee's
legal and accounting fees up to $75,000 per year and reasonable business
expenses incurred by the employee in connection with the business of the
Corporation. The Amended Employment Agreement also provides the employee with
various other benefits including the use of an automobile, disability and life
insurance, and a club membership.

         The annual bonus payable to the employee under the Amended Employment
Agreement is equal to $100,000 plus 10% of the Corporation's pretax earnings
over $5.0 million provided that no annual bonus is payable if pretax earnings of
the Corporation are less than $5.0 million. The Amended Employment Agreement
limits salary and the annual bonus payment described above to an aggregate of
not more than $1.0 million annually. Annual bonuses can be paid in cash or Class
A Common (non-voting) Stock at the option of the employee. For the years ended
June 2, 2002, June 3, 2001, and May 28, 2000, the bonus accrued under this
agreement was $298,000, $331,000 and $364,000, respectively.

         The Amended Employment Agreement also provides for the annual payment
of a long-term performance bonus based upon the Corporation's performance over
the prior five-year period as measured by its average sales growth and average
increase in operating profits as compared to an industry peer group over the
same period. The bonus payable is calculated based upon a formula matrix set
forth in the Amended Employment Agreement, with such formula being recommended
by an independent management consulting firm retained by the Corporation and
approved by the Compensation Committee of the Board of Directors. For the years
ended June 2, 2002, June 3, 2001, and May 28, 2000, the long-term performance
bonus accrued under this agreement was $157,000, $144,000, and $114,000,
respectively.

         The Amended Employment Agreement provides for annual supplemental
pension benefits, commencing upon the earlier of (a) five years after
termination of the employee (or one year following his death or disability) or
(b) the date of retirement, payable during the life of the employee and upon his
death for the life of his spouse. Such annual supplemental pension benefits are
equal to 60% of average total compensation (including bonuses) over the latest
three-year period prior to retirement, assuming retirement at age 65 or later.
Supplemental pension benefits are reduced based upon an established formula to
the extent the employee retires prior to age 65. The net present value of the
cost of providing this future benefit is recognized by the Corporation over the
remaining expected years


                                       16
<PAGE>
of service. The expense recognized under this agreement was approximately
$773,000, $628,000 and $428,000 for the years ended June 2, 2002, June 3, 2001,
and May 28, 2000, respectively. The projected benefit obligation was
approximately $3,584,000 and $2,811,000 at June 2, 2002 and June 3, 2001,
respectively.

         The Amended Employment Agreement was revised effective as of August 1,
1997 to make certain clarifying changes and to require that bonus payments to
Mr. Warehime in any taxable year in excess of $1.0 million would be subject to
shareholder approval, which shareholder approval was given on August 14, 1997.

         On January 23, 1997, the Corporation entered into a five-year
employment agreement with Gary T. Knisely, Executive Vice President, Secretary,
and Counsel of the Corporation, at an annual salary of $175,000 with such
compensation payable retroactively from June 1, 1996 (the "Knisely Agreement").
Unless terminated by either party, the Knisely Agreement automatically renews
annually on each anniversary date so that five years always remain on the term
of the agreement. The Knisely Agreement provides for annual salary increases
(but not decreases) equal to the greater of 5% of the prior year's salary or the
annual percentage increase in the CPI, as well as incentive bonuses and various
other benefits. As of June 2, 2002, the aggregate liability of the Corporation
under this agreement for the next five years is estimated to be $1,343,000,
excluding annual performance bonuses. In the event the employee is terminated
without cause, or in the event the employee terminates his employment after a
reduction (without his written consent) of his duties or authority,
compensation, or similar events, the Knisely Agreement provides for the payment
of the salary and bonus (including all other benefits) over the remaining term
of the agreement. In the event of termination due to death or disability, the
Knisely Agreement provides for the payment of salary and bonus (including all
other benefits) to the employee (or his spouse or other descendants in the event
of the employee's death) for the later of one year from the date of such
termination or the death of the employee.

         The Knisely Agreement also provides for annual supplemental pension
benefits equal to 60% of the employee's average annual compensation (including
bonuses but excluding other benefits) over the three most recent fiscal years
prior to the employee's termination if the employee is no longer employed by the
Corporation and the employee has attained the age of 55. Such annual
supplemental pension benefits are payable for the remainder of the lifetime of
the employee. The net present value of the cost of providing this future pension
benefit is recognized by the Corporation over Mr. Knisely's expected remaining
years of service. The expense recognized for supplemental pension benefits under
this agreement was approximately $81,000, $108,000, and $45,000, for the years
ended June 2, 2002, June 3, 2001, and May 28, 2000, respectively. The projected
benefit obligation was approximately $422,000 and $341,000 at June 2, 2002 and
June 3, 2001, respectively.

         On May 21, 1997, the Corporation entered into a change in control
severance agreement with Alan T. Young which provides for termination
compensation if Mr. Young's employment is terminated: (i) involuntarily, within
24 months of change in control or (ii) voluntarily, following a reduction in
base salary, duties and responsibilities, within 24 months of a change in
control. A "change in control" shall be deemed to occur if John A. Warehime
ceases to be Chief Executive Officer of the Corporation or ceases to have the
power and authority of the Chief Executive Officer. Pursuant to the terms of
this agreement, any payment due thereunder shall be made over a two year period
no less frequently than monthly and all payments during any twelve month period
shall not in the aggregate exceed the officer's total cash compensation (salary
and bonus) received from the Corporation during fiscal 2001.

         On October 17, 2001, the Corporation entered into a similar change in
control severance agreement with each of the following eight officers: Mr.
Pietro D. Giraffa, Jr., Mr. Edward L. Boeckel, Jr., Mr. Daniel E. Schuchart, Mr.
William S. Gaugler, Jr., Mr. Timothy D. Mechler, Ms. Jennifer L. Carter, Mr.
Jeffrey A. Warehime and Mr. J. Andrew Warehime. Jeffrey A. Warehime, Andrew
Warehime and Jennifer Carter are the adult children of John Warehime, the
Chairman of the Corporation.

         All payments made pursuant to any of these agreements are subject to
the further conditions that: (i) the officer maintain the confidentiality of the
Corporation's trade secrets, customer lists and other proprietary information of
the Corporation; (ii) for a period of two years following the termination of the
officer, neither the officer or his employer or business associate shall enter
into or attempt to enter into any business relationship, solicit for employment
or employ any person, employed by the Corporation or its affiliates at any time
within six months prior to the officer's termination; and (iii) for a period of
two years following the termination, the officer shall not directly or
indirectly own, manage, operate, join or participate in any capacity, any entity
which is primarily engaged


                                       17
<PAGE>
in a business which competes with any significant business of the Corporation or
its affiliates. If the executives were terminated on June 2, 2002, under
circumstances entitling them to severance payments pursuant to these agreements,
the aggregate amount due to each under the agreement would have been as follows:
Mr. Young $300,554, Mr. Giraffa $254,616, Mr. Boeckel $275,754, Mr. Schuchart
$285,760, Mr. Gaugler $169,774, Mr. Mechler $169,126, Ms. Carter $175,158, Mr.
Jeffrey A. Warehime $185,856 and Mr. J. Andrew Warehime $117,124.

         The Corporation is also committed to another employee, Patricia H.
Townsend, under a previous employment contract, which provides for minimum
salary levels, annual adjustments, as well as incentive bonuses and for a term,
which ends in March 2004. Provisions contained in the agreement provide for
continuation of the remuneration for the remainder of the term of the agreement
in the event of termination, incapacity, death, or disability. The estimated
commitment for future salaries through the duration of the agreement as of June
2, 2002 was approximately $140,000.

COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION

         Hanover Foods has designed its executive compensation program to
attract, motivate and retain talented executives. Toward this end, the executive
compensation program provides:

         -        A base salary program and benefits to attract and retain
                  talented executives who demonstrate the qualities required in
                  Hanover Food's business operations and who meet the
                  Corporation's established goals and standards.

         -        Annual incentive bonus payments that are highly variable based
                  on the achievement of the Corporation's pre-tax earnings goals
                  and pre-established individual goals. These incentive bonuses
                  reward individuals whose performance contributes to achieving
                  strategic and financial corporate objectives, which increase
                  shareholder value. Additionally, the long-term component of
                  the Chief Executive Officer's bonus is determined pursuant to
                  a formula based on the Corporation's performance over the
                  prior five years as compared to an industry peer group over
                  the same period.

         The Corporation's officer compensation program is comprised of base
salary, annual cash incentive compensation and various benefits generally
available to all full-time employees of the Corporation, including participation
in group medical and life insurance plans and a 401(k) plan. The Corporation
seeks to be competitive with compensation programs offered by companies in the
food processing industry and other companies of a similar size located in its
market area based on formal and informal surveys conducted by the Corporation.

         Base Salary. The Corporation has entered into employment agreements
with Messrs. Warehime and Knisely pursuant to which they were entitled to
receive annual base salaries of $701,995 and $231,525 during fiscal 2002,
respectively. Pursuant to the terms of the employment agreements, such salaries
are adjusted each year in accordance with the Consumer Price Index. The Board of
Directors believe that the compensation levels established in the employment
agreements were consistent with competitive practices for executives at this
level based upon an evaluation performed on these employment agreements by an
independent management consulting firm.

         The Corporation also entered into change in control severance agreement
with certain officers of the Corporation which are described under "Employment
Agreements and Change in Control Severance Agreements." These agreements do not
establish a base salary for these officers.

         Annual Incentive Compensation. Under his employment agreement, Mr.
Warehime is entitled to receive an annual bonus if the Corporation's pre-tax
earnings are $5.0 million or more. Such bonus is equal to $100,000 plus 10% of
all pre-tax earnings over $5.0 million. Such bonus, along with base salary, are
limited to a maximum of $1.0 million per year. Mr. Warehime is also entitled to
a long-term annual bonus based upon the Corporation's performance over the past
five years as measured by its average sales growth percentage ("Sales
Performance Index") and average percentage of operating profits to sales
("Profitability Index") as compared to the performance of companies in an
industry peer group. The bonus amount is determined by a formula contained in
Mr.


                                       18
<PAGE>
Warehime's employment agreement as calculated by an independent management
consulting firm retained by the Corporation.

         Annual cash bonuses of up to 100% of an officer's base salary are paid
to the Corporation's officers, other than the Chief Executive Officer, based
upon the Corporation's pre-tax earnings. In certain cases, bonuses are based on
certain individual performance goals. In addition, Alan T. Young, Senior Vice
President in Purchasing and Transportation received a bonus on incremental
industrial sales.

         Stock Options. On June 20, 2002, the Board of Directors approved a
Stock Option Plan as a means of compensating its executive officers and key
employees. Options were awarded to certain executive officers, excluding John
Warehime.

         Compensation of Chief Executive Officer. Pursuant to his employment
agreement, Mr. Warehime's annual base salary for fiscal 2002 was $701,995, which
represents an increase of $33,451 from fiscal 2001. Mr. Warehime also was paid a
bonus (which represents both short and long term components of Mr. Warehime's
bonus) pursuant to his employment agreement as a result of the achievement of
certain levels of pre-tax income by the Corporation and increases in the
Corporation's sales performance index and profitability index as compared to its
peers.

         Policy with respect to Section 162(m) of the Internal Revenue Code.
Generally, Section 162(m) of the Internal Revenue Code of 1986, and the
regulations promulgated thereunder (collectively, "Section 162(m)"), denies a
deduction to any publicly held Corporation, such as the Corporation, for certain
compensation exceeding $1,000,000 paid during a taxable year to the chief
executive officer and the four other highest paid executive officers, excluding,
among other things, certain performance-based compensation. The Compensation
Committee evaluates to what extent Section 162(m) will apply to its compensation
programs. In order to bring bonus payments to Mr. Warehime under his Employment
Agreement in excess of $1,000,000 into compliance with Section 162(m),
shareholders of the Class B Common Stock approved such bonus payments at a
meeting held in August 1997.

                      Members of the Compensation Committee

              Clayton J. Rohrbach, Jr.          Arthur S. Schaier

ITEM     12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
         RELATED STOCKHOLDER MATTERS

         The following table sets forth as of August 10, 2002 certain
information with respect to the beneficial ownership of the capital stock by:
(i) each person who is known by the Corporation to be the beneficial owner of
more than five percent of any class of the Corporation's capital stock; (ii)
each of the Corporation's directors; (iii) each of the Named Officers; and (iv)
the Corporation's directors and Named Officers as a group. Except as otherwise
indicated, the beneficial owners of the capital stock listed below have sole
investment and voting power with respect to such shares. The address of the
directors and Named Officers is that of the Corporation.

         As of August 10, 2002, the following number of shares by class of
capital stock were outstanding:

<TABLE>
<CAPTION>
          CLASS OF CAPITAL STOCK                                NUMBER OF SHARES
          ----------------------                                ----------------
<S>                                                             <C>
Class A Common Stock ..........................................      288,284
Class B Common Stock ..........................................      582,198
Preferred Stock, Series A .....................................        6,228
Preferred Stock, Series B .....................................        8,336
Preferred Stock, Series C .....................................       10,000
</TABLE>


                                       19
<PAGE>
<TABLE>
<CAPTION>
                                                                                     SHARES
                                                                               BENEFICIALLY OWNED (1)
                                                                    ----------------------------------------------
                                                                    TITLE OF CLASS      AMOUNT          % OF CLASS
                                                                    --------------      ------          ----------
<S>                                                                 <C>               <C>               <C>
NAME OF 5% BENEFICIAL OWNER

COMMON STOCK

Alan A. Warehime Testamentary Trust A(2)..........................     Common A             --                 --
Farmers Bank                                                           Common B         39,828                6.8
c/o Allfirst Bank
13 Baltimore Street
Hanover, PA 17331

Alan A. Warehime Testamentary Trust B(3)..........................     Common A             --                 --
Farmers Bank                                                           Common B         76,165               13.1
c/o Allfirst Bank
13 Baltimore Street
Hanover, PA 17331

Heartland Advisors, Inc.(4).......................................     Common A         49,500               17.2
c/o William J. Nasgovitz                                               Common B             --
790 North Milwaukee Street
Milwaukee, WI 53202


ARWCO Corporation(18).............................................     Common A         21,166                7.3
P.O. Box 917                                                           Common B             --                 --
Hanover, PA 17331

Warehime Enterprises, Inc.(18)....................................     Common A         19,109                6.6
251 Frederick Street                                                   Common B         15,994                2.7
Hanover, PA 17331

Elizabeth W. Stick(18)............................................     Common A         14,972                5.2
35 Peyton Road                                                         Common B         44,244                7.6
York, PA 17403

J. William Warehime(18)...........................................     Common A          2,734                 .9
257 Frederick Street                                                   Common B         78,208               13.4
Hanover, PA 17331

Sally W. Yelland(18)..............................................     Common A             --                 --
2015 Youngs Road                                                       Common B         39,288                6.7
Hanover, PA  17331

Hanover Foods Corporation(5)......................................     Common A             --                 --
Employee Stock Trust                                                   Common B        155,949               26.8
1486 York Street
Hanover, PA  17331

SERIES C PREFERRED STOCK

Hanover Foods Corporation 401(k) Savings Plan Trust(6)............     Common A             --                 --
1486 York Street                                                       Common B             --                 --
Hanover, PA 17331                                                      Preferred C      10,000              100.0

DIRECTORS AND NAMED OFFICERS

John A. Warehime(9)...............................................     Common A          3,562                1.2
                                                                       Common B         44,730                7.7
                                                                       Preferred C         183                1.8

Clayton J. Rohrbach, Jr.(7).......................................     Common A             88                  *
                                                                       Common B             --                 --
</TABLE>


                                       20
<PAGE>
<TABLE>
<CAPTION>
                                                                                     SHARES
                                                                               BENEFICIALLY OWNED (1)
                                                                    ----------------------------------------------
                                                                    TITLE OF CLASS      AMOUNT          % OF CLASS
                                                                    --------------      ------          ----------
<S>                                                                 <C>               <C>               <C>
Cyril T. Noel(5)(7)(8)(10)........................................     Common A            301                  *
                                                                       Common B        138,191               23.7
                                                                       Preferred A         432                6.9
                                                                       Preferred B         360                4.3

T. Edward Lippy(11)...............................................     Common A            385                  *
                                                                       Common B             --                 --

Arthur S. Schaier(7)..............................................     Common A          3,500                1.2
                                                                       Common B             --                 --

James G. Sturgill, CPA, CVA(12)...................................     Common A            100                  *
                                                                       Common B             --                 --

James A. Washburn.................................................     Common A             --                 --
                                                                       Common B             --                 --

Jennifer W. Carter(13)............................................     Common A            207                  *
                                                                       Common B          3,551                  *
                                                                       Preferred C          85                  *

T. Michael Haugh..................................................     Common A             --                 --
                                                                       Common B             --                 --

Gary T. Knisely, Esq.(8)(14)......................................     Common A          1,688                  *
                                                                       Common B          2,046                  *
                                                                       Preferred B          24                  *
                                                                       Preferred C         183                1.8

Pietro D. Giraffa, Jr.(15)........................................     Common A             --                 --
                                                                       Common B          1,035                  *
                                                                       Preferred C         180                1.8

Alan T. Young(16).................................................     Common A             --                 --
                                                                       Common B          1,541                  *
                                                                       Preferred C         182                1.8

Daniel E. Schuchart(17)...........................................     Common A             88                  *
                                                                       Common B          1,039                  *
                                                                       Preferred C         153                1.5

All directors and named officers as a group (13 persons)..........     Common A          9,919                3.4
                                                                       Common B        192,133               33.0
                                                                       Preferred A         432                6.9
                                                                       Preferred B         384                4.6
                                                                       Preferred C         966                9.7
</TABLE>


* Less than one percent.

(1)  The securities "beneficially owned" by a person are determined in
     accordance with the definition of "beneficial ownership" set forth in the
     regulations of the Securities and Exchange Commission and, accordingly,
     include securities owned by or for the spouse, children or certain other
     relatives of such person as


                                       21
<PAGE>
     well as other securities as to which the person has or shares voting or
     investment power or has the right to acquire within 60 days after August
     10, 2002. The same shares may be beneficially owned by more than one
     person. Beneficial ownership may be disclaimed as to certain of the
     securities.

(2)  Includes shares held by the Alan A. Warehime Testamentary Trust A. Voting
     and dispositive power with respect to such shares is shared by five
     trustees, each of whom has one vote. A majority vote of such individuals is
     required to vote or dispose of such shares. Trustees of such trust include
     John A. Warehime, Chairman, President and Chief Executive Officer of the
     Corporation, Cyril T. Noel, a director of the Corporation, Sally Yelland,
     Michael Warehime and the Allfirst Bank.

(3)  Includes shares held by the Alan A. Warehime Testamentary Trust B. Voting
     and dispositive power with respect to such shares is shared by five
     trustees, each of whom has one vote. A majority vote of such individuals is
     required to vote or dispose of such shares. Trustees of such trust include
     John A. Warehime, Chairman, President and Chief Executive Officer of the
     Corporation, Cyril T. Noel, a director of the Corporation, Sally Yelland,
     Michael Warehime and the Allfirst Bank.

(4)  As reported by Heartland Advisors, Inc. ("Heartland") and William J.
     Nasgovitz, the President and a principle shareholder of Heartland, in
     Amendment Five to Schedule 13G dated December 31, 2000. Each of Heartland
     and Mr. Nasgovitz reported sole voting and no dispositive power with
     respect to the shares held. Such shares are held in investment advisory
     accounts of Heartland. The interests of one such account, Heartland Value
     Fund, relates to more than 5% of the class.

(5)  The Employee Stock Trust may be deemed to beneficially own the shares held
     by such trust. Includes 4,258 shares owned by the Employee Stock Ownership
     Plan and 13,500 shares contributed to the Employee Stock Trust for the
     purpose of funding the Corporation's obligations under the Employee Stock
     Option Plan. Shares held by the Employee Stock Trust are voted by the
     employee beneficiaries of the Employee Stock Trust, on a confidential
     basis, except for procedural matters where the shares are voted by the
     trustee of such trust, Director Noel.

(6)  The 401(k) Plan may be deemed to beneficially own the shares held by such
     plan. The Series C Preferred Stock is currently convertible into shares of
     the Class A Common Stock on a one for one basis. The trustee of the 401(k)
     Plan is First Union National Bank. The trustees of the subtrust, which
     holds the Series C Preferred stock under the plan, are Directors Noel,
     Rohrbach and Schaier.

(7)  Excludes 10,000 shares of the Series C Preferred Stock held by the 401(k)
     Plan Trust. In their capacity as co-trustees of such plan, Directors Noel,
     Rohrbach and Schaier have shared voting and dispositive power over the
     10,000 shares held by the 401(k) Plan Trust. Shares held by the 401(k) Plan
     Trust are voted by a majority of the plan trustees. The Series C Preferred
     Stock is convertible into Class A Common Stock on a one for one basis.

(8)  Shares of Series A or B Preferred Stock are convertible into Class A Common
     Stock on an equitable basis. The current conversion ratio is 4.0 shares of
     Series A or B Preferred Stock to one share of Class A Common Stock. Such
     conversion ratio is subject to change based upon current book value of the
     Class A Common Stock.

(9)  Includes 3,562 shares of Class A Common Stock and 8,558 shares of Class B
     Common Stock, owned jointly with spouse, and 183 shares of Series C
     Preferred Stock owned by Mr. Warehime through the 401(k) Plan.

(10) Includes 88 shares of Class A Common Stock owned jointly with children,
     160 shares of Series A Preferred Stock owned jointly with spouse. Also
     includes 138,191 shares of Class B Common Stock held by the Employee Stock
     Trust, of which Mr. Noel is the trustee, as to which Mr. Noel may be deemed
     to be a beneficial owner.

(11) Includes 385 shares of Class A Common Stock owned jointly with spouse.

(12) Includes 100 shares of Class A Common Stock owned jointly with spouse.

(13) Includes 32 shares of Class B Common Stock owned by Ms. Carter through the
     Employee Stock Ownership Plan, 14 shares of Class B Common Stock owned by
     Ms. Carter's husband through the Employee Stock Ownership Plan, 82 shares
     of Series C Preferred Stock owned by Ms. Carter through 401(k) Plan, 3
     shares of Series C Preferred Stock owned by Ms. Carter's husband through
     401(k) Plan, and 500 shares of Class B Common Stock issuable upon the
     exercise of options, as to which Ms. Carter has voting power. See Footnote
     5 above.

(14) Includes (i) 46 shares of Class B Common Stock owned by Mr. Knisely through
     the Employee Stock Ownership Plan, (ii) 2,000 shares of Class B Common
     Stock issuable upon the exercise of options, as to which


                                       22
<PAGE>
     Mr. Knisely has voting power, (iii) 1,265 shares of Class A Common Stock,
     owned jointly with spouse, (iv) 227 shares of Class A Common Stock owned by
     Mr. Knisely's spouse (v) 24 shares of Series B Preferred Stock, owned
     jointly with spouse, and (vi) 183 shares of Series C Preferred Stock owned
     by Mr. Knisely through the 401(k) Plan.

(15) Includes 35 shares of Class B Common Stock owned by Mr. Giraffa through the
     Employee Stock Ownership Plan, 1,000 shares of Class B common Stock
     issuable upon the exercise of options, as to which Mr. Giraffa has voting
     power, and 180 shares of Series C Preferred Stock owned by Mr. Giraffa
     through the 401(k) Plan.

(16) Includes 41 shares of Class B Common Stock owned by Mr. Young through the
     Employee Stock Ownership Plan, 1,500 shares of Class B common Stock
     issuable upon the exercise of options, as to which Mr. Young has voting
     power, and 182 shares of Series C Preferred Stock owned by Mr. Young
     through the 401(k) Plan.

(17) Includes 39 shares of Class B Common Stock owned by Mr. Schuchart through
     the Employee Stock Ownership Plan, 1,000 shares of Class B common Stock
     issuable upon the exercise of options, as to which Mr. Schuchart has voting
     power, and 153 shares of Series C Preferred Stock owned by Mr. Schuchart
     through the 401(k) Plan.

(18) Ms. Stick, Mr. J. William Warehime and Ms. Yelland are directors and/or
     officers of ARWCO  Corporation or Warehime Enterprises, Inc. The shares
     owned by Warehime Enterprises, Inc. and ARWCO Corporation are not included
     in the shares beneficially owned by the individual directors and officers.

EQUITY COMPENSATION PLAN INFORMATION

<TABLE>
<CAPTION>
                                                                                      NUMBER OF SECURITIES
                                NUMBER OF SECURITIES                                 REMAINING AVAILABLE FOR
                                  TO BE ISSUED UPON         WEIGHTED-AVERAGE      FUTURE ISSUANCE UNDER EQUITY
                                     EXERCISE OF           EXERCISE PRICE OF           COMPENSATION PLANS
                                OUTSTANDING OPTIONS,      OUTSTANDING OPTIONS,        (EXCLUDING SECURITIES
        PLAN CATEGORY            WARRANTS AND RIGHTS      WARRANTS AND RIGHTS       REFLECTED IN COLUMN (a))
        -------------            -------------------      -------------------       ------------------------
<S>                             <C>                       <C>                     <C>
                                         (a)                      (b)                           (c)
EQUITY COMPENSATION PLANS
APPROVED BY SECURITY HOLDERS             --                       --                            --

EQUITY COMPENSATION PLANS
NOT APPROVED BY SECURITY
HOLDERS:(4)
  2002 STOCK OPTION PLAN               13,500(1)            $110 per share(2)                 21,100(3)
  401(k) SAVINGS PLAN                     0                        0                             190
  EMPLOYEE STOCK OWNERSHIP                0                        0                         138,191
    PLAN
</TABLE>


(1)  Amounts reflect options granted subsequent to fiscal year end. No options
     were granted under the Stock Option Plan during fiscal 2002.

(2)  Reflects weighted average exercise price of options granted on June 20,
     2002.

(3)  Represents shares available for issuance under the Stock Option Plan
     approved by the Board of Directors subsequent to fiscal year end following
     award of options on June 20, 2002.

(4)  Does not include shares held by the Employee Stock Trust. The Employee
     Stock Trust is designed to fund contributions to employee benefit plans for
     non-union employees of the Corporation (excluding John A. Warehime),
     including, but not limited to, the Employee Stock Ownership Plan and Stock
     Option Plan, and holds shares available for issuance (i) under the Employee
     Stock Ownership Plan, (ii) pursuant to outstanding options issued under the
     Stock Option Plan, and (iii) to fund other employee benefit plans.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         During fiscal 2002, the Corporation and its subsidiaries, in the normal
course of business, purchased and sold goods and services to related companies.
These transactions are summarized below.

         During fiscal 2002, the Corporation rented equipment from Park 100
Foods, Inc. The rental payments pursuant to such lease agreements totaled
$14,000 during fiscal 2002. In addition, the Corporation purchased


                                       23
<PAGE>
$2,000 of food ingredients from Park 100 Foods, Inc. and reimbursed Park 100
Foods, Inc. $9,000 for nonconforming food products. As of June 2, 2002, the
Corporation had an accounts receivable of $164,000 from Park 100 Foods, Inc. for
food products sold and shipped to Park 100 Foods, Inc. During fiscal 2002, the
Corporation sold approximately $1.6 million of frozen food products to Park 100
Foods, Inc., Tipton, Indiana. James A. Washburn, a director of the Corporation,
owns approximately 80% of the outstanding stock of Park 100 Foods, Inc.

         During fiscal 2002, the Corporation leased a two story farm house,
adjoining one story guest house and adjoining ground located on Trolley Road,
R.D. #3, Hanover, Heidelberg Township, Pennsylvania, for customer housing and
temporary new employee housing from John A. and Patricia M. Warehime for a total
of $49,000.

         During fiscal 2002, the Corporation leased a barn for seed storage,
located in Heidelberg Township, Pennsylvania for $4,000 from Warehime
Enterprises, Inc. In addition, the Corporation purchased used food processing
equipment for $77,000 from Warehime Enterprises, Inc. J. William Warehime, a
shareholder of the Corporation, and John A. Warehime, Chairman of the
Corporation, own 44.4% and 14.8% of the outstanding stock of Warehime
Enterprises, Inc., respectively.

         During fiscal 2002, the Corporation purchased $1.2 million contracted
vegetables from Lippy Brothers, Inc. T. Edward Lippy, a director of the
Corporation, owns approximately 37.0% of the outstanding stock of Lippy
Brothers, Inc.

         During fiscal 2002, the adult children of the Corporation's Chairman,
John Warehime, were employed by the Corporation, including Jennifer Carter,
Director, who is employed as Assistant to the Chairman, Jeffrey Warehime, who is
employed as Director - Brokered Retail Sales, and Andrew Warehime, who is
employed as Special Sales Manager. Jennifer Carter, Jeffrey Warehime and Andrew
Warehime are employed by the Corporation at annual salaries of $89,606, $95,067,
$60,319, respectively. See "Part III -- Item 11. Employment Agreements and
Change in Control Severance Agreements." Ms. Carter also receives director
compensation customary for the Corporation's directors. See "Part III -- Item
10. Directors and Executive Officers of the Corporation -- Director
Compensation." On June 20, 2002, each of Jennifer Carter, Jeffrey Warehime, and
Andrew Warehime were granted an option to purchase 500 shares of Class B common
stock. Andrea Kint, the daughter of Pietro Giraffa, Vice President and
Controller of the Corporation, is employed as Assistant Production Manager --
Hanover, PA Frozen Operations at an annual salary of $45,000.


                                       24
<PAGE>
STOCK PERFORMANCE GRAPH

         The following graph shows a comparison of the cumulative total return
for the Corporation's Class A Common Stock, the NASDAQ Stock Market and the
Hanover Composite Index (defined below), assuming an investment of $100 on June
1, 1997 and the reinvestment of all dividends. The Peer Group includes Seneca
Foods Corporation, J.M. Smuckers Company, Maui Land and Pineapple Co., Del Monte
Foods, Inc. and Odmalla Inc. The data points used for the performance graph are
listed below.

         The following graph is required to be included in this Annual Report by
SEC regulations; however, in reviewing these materials shareholders are advised
that since the Corporation's Class A Common Stock is not actively traded, it can
not be properly compared to companies whose securities are traded on an exchange
or the NASDAQ Stock Market.

                                  [LINE GRAPH]

<TABLE>
<CAPTION>
TOTAL RETURN ANALYSIS
                           6/1/1997    5/31/1998    5/30/1999    5/28/2000    6/3/2001     6/2/2002
                           --------    ---------    ---------    ---------    --------     --------
<S>                      <C>          <C>          <C>          <C>          <C>          <C>
Hanover Foods Corp.      $   100.00   $   149.29   $   177.69   $   181.40   $   151.67   $   154.61
Peer Group               $   100.00   $   137.79   $   146.40   $   140.25   $   164.74   $   193.27
Nasdaq Composite         $   100.00   $   126.65   $   178.67   $   237.96   $   151.22   $   115.77
</TABLE>


ITEM 14. CONTROLS AND PROCEDURES

         None.


                                       25
<PAGE>
                                     PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)   1. Financial Statements:

         Hanover Foods Corporation and Subsidiaries

         The following financial statements of Hanover Foods Corporation and
Subsidiaries are incorporated herein by reference to the Corporation's Annual
Report to Shareholders for the year ended June 2, 2002.

         Independent Auditors' Report

         Consolidated Balance Sheets as of June 2, 2002 and June 3, 2001.

         Consolidated Statements of Earnings for the Years Ended June 2, 2002,
June 3, 2001, and May 28, 2000.

         Consolidated Statements of Comprehensive Income for the Years Ended
June 2, 2002, June 3, 2001, and May 28, 2000.

         Consolidated Statements of Cash Flows for the Years Ended June 2, 2002,
June 3, 2001, and May 28, 2000.

         Consolidated Statements of Stockholders' Equity for the Years Ended
June 2, 2002, June 3, 2001, and May 28, 2000.

         Notes to Consolidated Financial Statements for the Years Ended June 2,
2002, June 3, 2001, and May 28, 2000.

         2.       Financial Statement Schedules

         None. All schedules are omitted because they are not applicable or not
required, or because the required information is included in the financial
statements or notes thereto.

         3.       Exhibits

         The following exhibits are filed herein or have been previously filed
with the Securities and Exchange Commission and are incorporated by reference
herein.

<TABLE>
<CAPTION>
NUMBER           DESCRIPTION
------           -----------
<S>              <C>
      3(a)        Registrant's Amended and Restated Articles of Incorporation is
                  incorporated by reference to the Form 10-K filed on August 29,
                  1997, wherein such Exhibit is designated as 3(a).

      3(b)        Amendment No. 1 to Registrant's Amended and Restated Articles
                  of Incorporation is incorporated by reference to the Form 10-K
                  filed on August 29, 1997, wherein such Exhibit is designated
                  as 3(b).

      3(c)        Registrant's Amended and Restated Bylaws enacted January 15,
                  1999 are incorporated by reference to the Form 10-K filed on
                  August 30, 1999, wherein such Exhibit is designated as 3(d).

      4(a)        Note Agreement dated as of December 1, 1991, between the
                  Corporation and Allstate Life Insurance Corporation, with
                  regard to the Corporation's $25,000,000, 8.74% Senior Notes
                  Due March 15, 2007, is incorporated herein by reference to the
                  Form 10-K filed June 25, 1992 wherein such Exhibit is
                  designated as 4(a).

      4(b)        June 20, 1995 First Amendment to December 1, 1991 Note
                  Agreement between the Corporation and Allstate Life Insurance
                  Corporation (the "Note Agreement") and Waiver of Compliance
                  with Section 5.9 of the Note Agreement is incorporated herein
                  by reference to the Form 10-K filed on
</TABLE>


                                       26
<PAGE>
<TABLE>
<CAPTION>
NUMBER           DESCRIPTION
------           -----------
<S>              <C>
                  July 3, 1995, wherein such Exhibit is designated as 4(b).

      4(c)        June 24, 1996 waiver to covenants in the December 1, 1991 Note
                  Agreement between the Corporation and Allstate Life Insurance
                  Corporation (the "Note Agreement") is incorporated herein by
                  reference to the Form 10-K filed on July 2, 1996, wherein such
                  Exhibit is designated as 4(c).

      4(d)        July 1, 1996 Second Amendment to December 1, 1991 Note
                  Agreement between the Corporation and Allstate Life Insurance
                  Corporation (the "Note Agreement") is incorporated by
                  reference to the Form 10-K filed on August 27, 1997, wherein
                  such Exhibit is designated as 4(d).

      4(e)        August 1, 1997 Third Amendment to December 1, 1991 Note
                  Agreement between the Corporation and Allstate Life Insurance
                  Corporation (the "Note Agreement") is incorporated by
                  reference to the Form 10-K filed on August 30, 1999, wherein
                  such Exhibit is designated as 4(e).

      4(f)        March 15, 1999 Fourth Amendment to December 1, 1991 Note
                  Agreement between the Corporation and Allstate Life Insurance
                  Corporation (the "Note Agreement") is incorporated by
                  reference to the Form 10-K filed on August 30, 1999, wherein
                  such Exhibit is designated as 4(f).

      4(g)        July 26, 1999 waiver to covenants in the December 1, 1991
                  Note Agreement between the Corporation and Allstate Life
                  Insurance Corporation (the "Note Agreement") is incorporated
                  by reference to the Form 10-K filed on August 30, 1999,
                  wherein such Exhibit is designated as 4(g).

      4(h)        July 28, 2000 waiver to covenants in the December 1991 Note
                  Agreement between the Corporation and Allstate Life Insurance
                  Corporation (the "Note Agreement") is incorporated by
                  reference to the Form 10-K filed on August 23, 2000, wherein
                  such Exhibit is designated as 4(h).

      4(i)        August 3, 2001 waiver to covenants in the December 1991 Note
                  Agreement between the Corporation and Allstate Life Insurance
                  Compensation (the "Note Agreement") is incorporated by
                  reference to the Form 10-K filed on August 31, 2001, wherein
                  such Exhibits is designated 4(i).

      4(j)        Note Purchase Agreement dated as of September 1, 2001, between
                  the Corporation and a group of lenders led by John Hancock
                  Life Insurance Company with regard to the Corporation's
                  $25,000,000, 7.01% a group of lenders led by Senior Notes Due
                  September 15, 2011 is attached hereto and designated Exhibit
                  4(j).

      9(a)        April 5, 1988 Voting Trust Agreement is incorporated herein by
                  reference to the Form 10 filed July 28, 1989, wherein such
                  Exhibit is designated as 9(a).

      9(b)        December 1, 1988 Voting Trust Agreement is incorporated herein
                  by reference to the Form 10 filed July 28, 1989, wherein such
                  Exhibit is designated as 9(b).

      9(c)        Writing dated April 5, 1988 appointing John A. Warehime as
                  Successor Voting Trustee under Voting Trust Agreement dated
                  December 1, 1988, is incorporated herein by reference to the
                  Form 8-K filed June 1, 1990, wherein such Exhibit is
                  designated as 9(c).

      9(d)        Writing dated December 1, 1988 appointing John A. Warehime as
                  Successor Voting Trustee under Voting Trust Agreement dated
                  December 1, 1988, is incorporated herein by reference to the
                  Form 8-K filed June 1, 1990, wherein such Exhibit is
                  designated as 9(d).

     10(a)        April 28, 1988 Sublease Agreement between Warehime
                  Enterprises, Inc. and Hanover Brands, Inc., is incorporated
                  herein by reference to the Form 10 filed July 28, 1989,
                  wherein such Exhibit is designated as 10(a).

     10(b)        April 28, 1988 Agreement of Sale between Warehime Enterprises,
                  Inc. and Hanover Brands, Inc., is incorporated herein by
                  reference to the Form 10 filed July 28, 1989, wherein such
                  Exhibit is designated as 10(b).

    10(c)         March 3, 1989 Agreement of Sale between Warehime Enterprises,
                  Inc. and Hanover Brands, Inc., is incorporated herein by
                  reference to the Form 10 filed July 28, 1989, wherein such
                  Exhibit is designated as 10(c).
</TABLE>


                                       27
<PAGE>
<TABLE>
<CAPTION>
NUMBER           DESCRIPTION
------           -----------
<S>              <C>
     10(d)        November 14, 1986 Employment Agreement between Hanover Brands,
                  Inc. and Patricia H. Townsend is incorporated herein by
                  reference to the Form 10 filed July 28, 1989, wherein such
                  Exhibit is designated as 10(d).

     10(e)        May 10, 1991 Amendment to April 28, 1988 Agreement of Sale
                  between Warehime Enterprises, Inc. and Hanover Brands, Inc.,
                  is incorporated herein by reference to the Form 10-K filed
                  June 29, 1991, wherein such Exhibit is designated as 10(e).

     10(f)        October 1, 1994 Amendment to the June 1, 1994 Lease Agreement
                  between Hanover Foods Corporation and Food Service East, Inc.
                  is incorporated herein by reference to the Form 10-K filed
                  July 3, 1995, wherein such Exhibit is designated as 10(f).

     10(g)        June 12, 1995 Employment Agreement between Hanover Foods
                  Corporation and John A. Warehime is incorporated herein by
                  reference to the Form 10-K filed July 3, 1995, wherein such
                  Exhibit is designated as 10(g). *

     10(h)        April 4, 1994 Lease Agreement between John A. and Patricia M.
                  Warehime and Hanover Foods Corporation is incorporated herein
                  by reference to the Form 10-K filed July 2, 1996, wherein such
                  Exhibit is designated as 10(h).

     10(i)        July 27, 1995 Installment Sales Agreement for the purchase of
                  5,148 shares of Hanover Foods Class B Voting Common Stock from
                  Cyril T. Noel, individually, and Cyril T. Noel and Frances L.
                  Noel, jointly, is incorporated herein by reference to the Form
                  10-K filed July 2, 1996, wherein such Exhibit is designated as
                  10(i).

     10(j)        April 1, 1996 Installment Sales Agreement for the purchase of
                  1,210 shares of Hanover Foods Class B Voting Common Stock and
                  5,990 shares of Hanover Foods Class A Nonvoting Common Stock
                  from John R. Miller, Jr. is incorporated herein by reference
                  to the Form 10-K filed July 2, 1996, wherein such Exhibit is
                  designated as 10(j).

     10(k)        January 23, 1997 Employment Agreement between Hanover Foods
                  Corporation and Gary T. Knisely is incorporated herein by
                  reference to the Form 10-K filed August 27, 1997, wherein such
                  Exhibit is designated 10(k). *

     10(l)        February 13, 1997 Amendment No. 1 to June 12, 1995 Employment
                  Agreement between Hanover Foods Corporation and John A.
                  Warehime is incorporated herein by reference to the Form 10-K
                  filed August 27, 1997, wherein such Exhibit is designated
                  10(l). *

     10(m)        August 1, 1997 Amendment No. 2 to June 12, 1995 Employment
                  Agreement between Hanover Foods Corporation and John A.
                  Warehime is incorporated herein by reference to the Form 10-K
                  filed August 27, 1997, wherein such Exhibit is designated
                  10(m).*

     10(n)        May 21, 1997 Senior Executive Agreement between Hanover Foods
                  Corporation and Clement A. Calabrese is incorporated herein by
                  reference to the Form 10-K filed August 27, 1997, wherein such
                  Exhibit is designated 10(n). *

     10(o)        May 21, 1997 Senior Executive Agreement between Hanover Foods
                  Corporation and Alan T. Young is incorporated herein by
                  reference to the Form 10-K filed on August 27, 1997, wherein
                  such Exhibit is designated 10(o). *

     10(p)        April 22, 1997 John R. Miller, Jr. Voting Agreement is
                  incorporated herein by reference to the Form 10-K filed on
                  August 27, 1997, wherein such Exhibit is designated as 10(p).
                  *

     10(q)        April 1, 2000 Amendment No. 3 to June 12, 1995 Employment
                  Agreement between Hanover Foods Corporation and John A.
                  Warehime is incorporated by reference to the Form 10-K filed
                  on August 23, 2000, wherein such Exhibits designated as 10
                  (q).

     10(r)        April 1, 2000 Amendment No. 1 to January 23, 1997 Employment
                  Agreement between Hanover Foods Corporation and Gary T.
                  Knisely is incorporated by reference to the Form 10-K filed on
                  August 23, 2000, wherein such Exhibit designated as 10 (r).
</TABLE>


                                       28
<PAGE>
<TABLE>
<CAPTION>
NUMBER           DESCRIPTION
------           -----------
<S>              <C>
     10(s)        Annual Top Management Cash Bonus Program. *

     10(t)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and Pietro D. Giraffa, Jr. is incorporated
                  by reference to the Form 10-K filed on August 31, 2001,
                  wherein such Exhibit is designated as 10(t). *

    10 (u)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and Edward L. Boeckel, Jr. is incorporated
                  by reference to the Form 10-K filed on August 31, 2001,
                  wherein such Exhibit is designated as 10(u). *

     10(v)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and Daniel E. Schuchart is incorporated by
                  reference to the Form 10-K filed on August 31, 2001, wherein
                  such Exhibit is designated as 10(v). *

     10(w)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and William S. Gaugler, Jr. incorporated by
                  reference to the Form 10-K filed on August 31, 2001, wherein
                  such Exhibit is designated as 10(w). *

     10(x)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and Timothy D. Mechler is incorporated by
                  reference to the Form 10-K filed on August 31, 2001, wherein
                  such Exhibit is designated as 10(x). *

     10(y)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and Jennifer L. Carter is incorporated by
                  reference to the Form 10(k) filed on August 31, 2001, wherein
                  such Exhibit is designated as 10(y).

     10(z)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and Jeffrey A. Warehime is incorporated by
                  reference to the Form 10-K filed on August 31, 2001, wherein
                  such Exhibit is designated as 10(z). *

    10(aa)        October 27, 2000 Senior Executive Agreement between Hanover
                  Foods Corporation and J. Andrew Warehime is incorporated by
                  reference to the Form 10-K filed on August 31, 2001, wherein
                  such Exhibit is designated as 10(aa). *

    10(bb)        2002 Stock Option Plan and Form of Option Agreement.

    10(cc)        Revised and Restated Employee Stock Trust, effective June 20, 2002.

     11           Computation of Earnings Per Share. Incorporated by reference
                  to Note 12 of the Notes to Consolidated Financial Statements.

     13           2002 Annual Report to Shareholders is attached as Exhibit 13.

     21           Subsidiaries of the Registrant.

     99.1         Audit Committee Charter is incorporated by reference to the
                  Form 10-K filed on August 31, 2001, wherein such Exhibit is
                  designated as 20.

     99.2         Certification of the Chief Executive Officer pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002.

     99.3         Certification of the Chief Financial Officer pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002.
</TABLE>

*Management contract or compensatory plan or arrangement.

(b)      Reports on Form 8-K

         None.


                                       29
<PAGE>
                                   SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

DATE:   AUGUST 30, 2002.

                                                HANOVER FOODS CORPORATION


                                                By: /s/ John A. Warehime
                                                    ----------------------------
                                                     JOHN A. WAREHIME
                                                     Chairman, President and
                                                     Chief Executive Officer

         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.

By:  /s/ John A. Warehime                     By:  /s/ Clayton J. Rohrbach, Jr.
     --------------------------------------        ----------------------------
     John A. Warehime                              Clayton J. Rohrbach, Jr.
     Chairman, President                           Director
     Chief Executive Officer and Director

Date:  August 30, 2002                        Date:  August 30, 2002

By:  /s/ Gary T. Knisely                      By:  /s/ James G. Sturgill
     --------------------------------------        ---------------------
     Gary T. Knisely                               James G. Sturgill
     Executive Vice President                      Director
     Counsel
     Chief Financial Officer

Date:  August 30, 2002                        Date:  August 30, 2002

By:  /s/ Pietro D. Giraffa, Jr.               By:  /s/ James A. Washburn
     --------------------------------------        ---------------------
     Pietro D. Giraffa, Jr.                        James A. Washburn
     Vice President - Controller                   Director
     Chief Accounting Officer

Date:  August 30, 2002                        Date:  August 30, 2002

By:  /s/ Arthur S. Schaier                    By:  /s/ Cyril T. Noel
     --------------------------------------        -----------------
     Arthur S. Schaier                             Cyril T. Noel
     Director                                      Director

Date:  August 30, 2002                        Date:  August 30, 2002

By:  /s/ T. Edward Lippy                      By:  /s/ Jennifer W. Carter
     --------------------------------------        ----------------------
     T. Edward Lippy                               Jennifer W. Carter
     Director                                      Director

Date:  August 30, 2002                        Date:  August 30, 2002

By:  /s/ T. Michael Haugh
     --------------------------------------
     T. Michael Haugh
     Director

Date:  August 30, 2002
<PAGE>
                                  CERTIFICATION

         I, John A. Warehime, Chief Executive Officer of Hanover Foods
Corporation, certify that:

         1.       I have reviewed this annual report on Form 10-K of Hanover
                  Foods Corporation;

         2.       Based on my knowledge, this annual report does not contain any
                  untrue statement of a material fact or omit to state a
                  material fact necessary to make the statements made, in light
                  of the circumstances under which such statements were made,
                  not misleading with respect to the period covered by this
                  annual report; and

         3.       Based on my knowledge, the financial statements, and other
                  financial information included in this annual report, fairly
                  present in all material respects the financial condition,
                  results of operations and cash flows of the registrant as of,
                  and for, the periods presented in this annual report.



         Date:  August 30, 2002              /s/ John A. Warehime
                                             ----------------------------------
                                             John A. Warehime
                                             Chief Executive Officer
<PAGE>
                                  CERTIFICATION

         I, Gary T. Knisely, Chief Financial Officer of Hanover Foods
Corporation, certify that:

         1.       I have reviewed this annual report on Form 10-K of Hanover
                  Foods Corporation;

         2.       Based on my knowledge, this annual report does not contain any
                  untrue statement of a material fact or omit to state a
                  material fact necessary to make the statements made, in light
                  of the circumstances under which such statements were made,
                  not misleading with respect to the period covered by this
                  annual report; and

         3.       Based on my knowledge, the financial statements, and other
                  financial information included in this annual report, fairly
                  present in all material respects the financial condition,
                  results of operations and cash flows of the registrant as of,
                  and for, the periods presented in this annual report.



         Date:  August 30, 2002              /s/ Gary T. Knisely
                                             -----------------------------------
                                             Gary T. Knisely
                                             Chief Financial Officer
<PAGE>
                            HANOVER FOODS CORPORATION

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
NUMBER      DESCRIPTION
------      -----------
<S>         <C>
3(a)        Registrant's Amended and Restated Articles of Incorporation is
            incorporated by reference to the Form 10-K filed on August 29, 1997,
            wherein such Exhibit is designated as 3(a).

3(b)        Amendment No. 1 to Registrant's Amended and Restated Articles of
            Incorporation is incorporated by reference to the Form 10-K filed on
            August 29, 1997, wherein such Exhibit is designated as 3(b).

3(c)        Registrant's Amended and Restated Bylaws enacted January 15, 1999
            are incorporated by reference to the Form 10-K filed on August 30,
            1999, wherein such Exhibit is designated as 3 (c).

4(a)        Note Agreement dated as of December 1, 1991, between the Corporation
            and Allstate Life Insurance Corporation, with regard to the
            Corporation's $25,000,000, 8.74% Senior Notes Due March 15, 2007, is
            incorporated herein by reference to the Form 10-K filed June 25,
            1992 wherein such Exhibit is designated as 4(a).

4(b)        June 20, 1995 First Amendment to December 1, 1991 Note Agreement
            between the Corporation and Allstate Life Insurance Corporation (the
            "Note Agreement") and Waiver of Compliance with Section 5.9 of the
            Note Agreement is incorporated herein by reference to the Form 10-K
            filed on July 3, 1995, wherein such Exhibit is designated as 4(b).

4(c)        June 24, 1996 waiver to covenants in the December 1, 1991 Note
            Agreement between the Corporation and Allstate Life Insurance
            Corporation (the "Note Agreement") is incorporated herein by
            reference to the Form 10-K filed on July 2, 1996, wherein such
            Exhibit is designated as 4(c).

4(d)        July 1, 1996 Second Amendment to December 1, 1991 Note Agreement
            between the Corporation and Allstate Life Insurance Corporation (the
            "Note Agreement") is incorporated by reference to the Form 10-K
            filed on August 27, 1997, wherein such Exhibit is designated as
            4(d).

4(e)        August 1, 1997 Third Amendment to December 1, 1991 Note Agreement
            between the Corporation and Allstate Life Insurance Corporation (the
            "Note Agreement") is incorporated by reference to the Form 10-K
            filed on August 30, 1999, wherein such Exhibit is designated as
            4(e).

4(f)        March 15, 1999 Fourth Amendment to December 1, 1991 Note Agreement
            between the Corporation and Allstate Life Insurance Corporation (the
            "Note Agreement") is incorporated by reference to the Form 10-K
            filed on August 30, 1999, wherein such Exhibit is designated as
            4(f).

4(g)        July 26, 1999 waiver to covenants in the December 1, 1991 Note
            Agreement between the Corporation and Allstate Life Insurance
            Corporation (the "Note Agreement") is incorporated by reference to
            the Form 10-K filed on August 30, 1999, wherein such Exhibit is
            designated as 4(g).

4(h)        July 28, 2000 waiver to covenants in the December 1991 Note
            Agreement between the Corporation and Allstate Life Insurance
            Corporation (the "Note Agreement") is incorporated by reference to
            the Form 10-K filed on August 23, 2000, wherein such Exhibit is
            designated as 4(h).

4(i)        August 3, 2001 waiver to covenants in the December 1991 Note
            Agreement between the Corporation and Allstate Life Insurance
            Compensation (the "Note Agreement") is incorporated by reference to
            the Form 10-K filed on August 31, 2001, wherein such Exhibits is
            designated 4(i).

4(j)        Note Purchase Agreement dated as of September 1, 2001, between the
            Corporation and a group of lenders led by John Hancock Life
            Insurance Company with regard to the Corporation's $25,000,000,
            7.01% a group of lenders led by Senior Notes Due September
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER      DESCRIPTION
------      -----------
<S>         <C>
            15, 2011 is attached hereto and designated Exhibit 4(j).

9(a)        April 5, 1988 Voting Trust Agreement is incorporated herein by
            reference to the Form 10 filed July 28, 1989, wherein such Exhibit
            is designated as 9(a).

9(b)        December 1, 1988 Voting Trust Agreement is incorporated herein by
            reference to the Form 10 filed July 28, 1989, wherein such Exhibit
            is designated as 9(b).

9(c)        Writing dated April 5, 1988 appointing John A. Warehime as Successor
            Voting Trustee under Voting Trust Agreement dated December 1, 1988,
            is incorporated herein by reference to the Form 8-K filed June 1,
            1990, wherein such Exhibit is designated as 9(c).

9(d)        Writing dated December 1, 1988 appointing John A. Warehime as
            Successor Voting Trustee under Voting Trust Agreement dated December
            1, 1988, is incorporated herein by reference to the Form 8-K filed
            June 1, 1990, wherein such Exhibit is designated as 9(d).

10(a)       April 28, 1988 Sublease Agreement between Warehime Enterprises, Inc.
            and Hanover Brands, Inc., is incorporated herein by reference to the
            Form 10 filed July 28, 1989, wherein such Exhibit is designated as
            10(a).

10(b)       April 28, 1988 Agreement of Sale between Warehime Enterprises, Inc.
            and Hanover Brands, Inc., is incorporated herein by reference to the
            Form 10 filed July 28, 1989, wherein such Exhibit is designated as
            10(b).

10(c)       March 3, 1989 Agreement of Sale between Warehime Enterprises, Inc.
            and Hanover Brands, Inc., is incorporated herein by reference to the
            Form 10 filed July 28, 1989, wherein such Exhibit is designated as
            10(c).

10(d)       November 14, 1986 Employment Agreement between Hanover Brands, Inc.
            and Patricia H. Townsend is incorporated herein by reference to the
            Form 10 filed July 28, 1989, wherein such Exhibit is designated as
            10(d).

10(e)       May 10, 1991 Amendment to April 28, 1988 Agreement of Sale between
            Warehime Enterprises, Inc. and Hanover Brands, Inc., is incorporated
            herein by reference to the Form 10-K filed June 29, 1991, wherein
            such Exhibit is designated as 10(e).

10(f)       October 1, 1994 Amendment to the June 1, 1994 Lease Agreement
            between Hanover Foods Corporation and Food Service East, Inc. is
            incorporated herein by reference to the Form 10-K filed July 3,
            1995, wherein such Exhibit is designated as 10(f).

10(g)       June 12, 1995 Employment Agreement between Hanover Foods Corporation
            and John A. Warehime is incorporated herein by reference to the Form
            10-K filed July 3, 1995, wherein such Exhibit is designated as
            10(g). *

10(h)       April 4, 1994 Lease Agreement between John A. and Patricia M.
            Warehime and Hanover Foods Corporation is incorporated herein by
            reference to the Form 10-K filed July 2, 1996, wherein such Exhibit
            is designated as 10(h).

10(i)       July 27, 1995 Installment Sales Agreement for the purchase of 5,148
            shares of Hanover Foods Class B Voting Common Stock from Cyril T.
            Noel, individually, and Cyril T. Noel and Frances L. Noel, jointly,
            is incorporated herein by reference to the Form 10-K filed July 2,
            1996, wherein such Exhibit is designated as 10(i).

10(j)       April 1, 1996 Installment Sales Agreement for the purchase of 1,210
            shares of Hanover Foods Class B Voting Common Stock and 5,990 shares
            of Hanover Foods Class A Nonvoting Common Stock from John R. Miller,
            Jr. is incorporated herein by reference to the Form 10-K filed July
            2, 1996, wherein such Exhibit is designated as 10(j).

10(k)       January 23, 1997 Employment Agreement between Hanover Foods
            Corporation and Gary T. Knisely is incorporated herein by reference
            to the Form 10-K filed August 27, 1997, wherein such Exhibit is
            designated 10(k). *

10(l)       February 13, 1997 Amendment No. 1 to June 12, 1995 Employment
            Agreement between Hanover Foods Corporation and John A. Warehime is
            incorporated herein by reference to the Form 10-K filed August 27,
            1997, wherein such Exhibit is designated 10(l). *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER      DESCRIPTION
------      -----------
<S>         <C>
10(m)       August 1, 1997 Amendment No. 2 to June 12, 1995 Employment Agreement
            between Hanover Foods Corporation and John A. Warehime is
            incorporated herein by reference to the Form 10-K filed August 27,
            1997, wherein such Exhibit is designated 10(m).*

10(n)       May 21, 1997 Senior Executive Agreement between Hanover Foods
            Corporation and Clement A. Calabrese is incorporated herein by
            reference to the Form 10-K filed August 27, 1997, wherein such
            Exhibit is designated 10(n). *

10(o)       May 21, 1997 Senior Executive Agreement between Hanover Foods
            Corporation and Alan T. Young is incorporated herein by reference to
            the Form 10-K filed on August 27, 1997, wherein such Exhibit is
            designated 10(o). *

10(p)       April 22, 1997 John R. Miller, Jr. Voting Agreement is incorporated
            herein by reference to the Form 10-K filed on August 27, 1997,
            wherein such Exhibit is designated as 10(p). *

10(q)       April 1, 2000 Amendment No. 3 to June 12, 1995 Employment Agreement
            between Hanover Foods Corporation and John A. Warehime is
            incorporated by reference to the Form 10-K filed on August 23, 2000,
            wherein such Exhibits designated as 10 (q).

10(r)       April 1, 2000 Amendment No. 1 to January 23, 1997 Employment
            Agreement between Hanover Foods Corporation and Gary T. Knisely is
            incorporated by reference to the Form 10-K filed on August 23, 2000,
            wherein such Exhibit designated as 10 (r).

10(s)       Annual Top Management Cash Bonus Program.

10(t)       October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and Pietro D. Giraffa, Jr. is incorporated by reference
            to the Form 10-K filed on August 31, 2001, wherein such Exhibit is
            designated as 10(t). *

10(u)       October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and Edward L. Boeckel, Jr. is incorporated by reference
            to the Form 10-K filed on August 31, 2001, wherein such Exhibit is
            designated as 10(u). *

10(v)       October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and Daniel E. Schuchart is incorporated by reference to
            the Form 10-K filed on August 31, 2001, wherein such Exhibit is
            designated as 10(v). *

10(w)       October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and William S. Gaugler, Jr incorporated by reference to
            the Form 10-K filed on August 31, 2001, wherein such Exhibit is
            designated as 10(w). *

10(x)       October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and Timothy D. Mechler is incorporated by reference to
            the Form 10-K filed on August 31, 2001, wherein such Exhibit is
            designated as 10(x). *

10(y)       October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and Jennifer L. Carter is incorporated by reference to
            the Form 10(k) filed on August 31, 2001, wherein such Exhibit is
            designated as 10(y).

10(z)       October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and Jeffrey A. Warehime is incorporated by reference to
            the Form 10-K filed on August 31, 2001, wherein such Exhibit is
            designated as 10(z). *

10(aa)      October 27, 2000 Senior Executive Agreement between Hanover Foods
            Corporation and J. Andrew Warehime is incorporated by reference to
            the Form 10-K filed on August 31, 2001, wherein such Exhibit is
            designated as 10(aa). *

10(bb)      2002 Stock Option Plan and Form of Option Agreement.

10(cc)      Revised and Restated Employee Stock Trust, effective June 20, 2002.

11          Computation of Earnings Per Share. Incorporated by reference to Note
            12 of the Notes to Consolidated Financial Statements.

13          2002 Annual Report to Shareholders is attached as Exhibit 13.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER      DESCRIPTION
------      -----------
<S>         <C>
21          Subsidiaries of the Registrant.

99.1        Audit Committee Charter is incorporated by reference to the Form
            10-K filed on August 31, 2001, wherein such Exhibit is designated as
            20.

99.2        Certification of the Chief Executive Officer pursuant to Section 906
            of the Sarbanes-Oxley Act of 2002.

99.3        Certification of the Chief Financial Officer pursuant to Section 906
            of the Sarbanes-Oxley Act of 2002.
</TABLE>

* Management contract or compensatory plan or arrangement